Daisy Group of the UK sells WiMAX Licences

Daisy Group, a popular wireless broadband solutions company operating in the United Kingdom has sold off its WiMAX wireless broadband spectrum licences to UK Broadband for a cash consideration of GBP 12.5 million.

According to sources, the wireless networking company has also disposed of its loss-making non-core wireless broadband (WiFi) business, Freedom4 WiFi. This business of the company has been sold for a namesake amount to the existing management team.

As a matter of fact, the WiMAX wireless mobile broadband spectrum was upheld through a subsidiary firm, Freedom4. It is also understood that the disposal of licences would ward off an annual cash outflow of GBP 0.8 million, while an extra GBP 1 million in cash per year would be saved through the subsequent shut down of the subsidiary Freedom4.

The chief executive officer of the Daisy Group, Mathew Riley said that their core strategy was to emerge as the leading provider of unified communications to the mid-market business clients and the SME customers.

Riley added that WiFi and WiMAX businesses were seldom core to the Daisy Group, and the sale meant that they could then focus on their strategy of unified communications provision as well as the improvement of cash flow.

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