Crossroads Sold All Hardware to Canadian-Based StrongBox Data Solutions for $2 Million
And also portfolio of 138 patents and pending patents, but not '972
This is a Press Release edited by StorageNewsletter.com on March 23, 2016 at 2:52 pmCrossroads Systems, Inc. announced the sale of its product business and all related assets to Canadian-based StrongBox Data Solutions, Inc. (SDSI) for net proceeds of $1.85 million in cash.
The agreement includes the company’s entire product portfolio and maintenance business, including its StrongBox and SPHiNX storage solutions. As part of the purchase agreement, 27 of Crossroads’ employees have transitioned to SDSI. Existing product customers and partners should see no disruption in service.
The company, in partnership with Fortress Investment Group LLC, also signed an agreement with AQUA Licensing LLC to market and sell the non-‘972 patent portfolio. The portfolio consists of 138 patents and pending patents. Although Crossroads commissioned two independent studies of the portfolio in 2013 and 2014, the company can provide no assurance regarding the timing or value of a transaction, or even if one will occur.
Richard K. Coleman, Jr., president and CEO, Crossroads, said: “We believe the sale of our product business is clearly in shareholders’ best interests as it reduces our cash burn. Going forward we will focus our efforts and resources on vigorously defending our intellectual property and identifying additional IP monetization opportunities. As part of that initiative, we believe our agreement with Fortress and AQUA to seek a buyer for the non-‘972 patent portfolio provides the quickest potential path to additional shareholder value.”
StrongBox Data Solutions is in big storage, providing powerful solutions to many of the world’s largest corporations, governments and organizations. It is a pioneer in simplifying data management and reducing storage costs with patented technology.
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2016.03.09 | Press Release
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