Following a brief halt this morning, shares of Wireless Matrix (TSX:WRX) are soaring after the company announced it had reached an agreement to sell its subsidiary, Wireless Matrix USA Inc., for (US) $53-million.
The company announced it will return this cash -estimated to be about $51 million after expenses- to shareholders.
Wireless Matrix Chairman Alex Washburn said the decision, which was approved unanimously by the board, came after a thorough review.
“We are very pleased to announce this agreement, which provides our shareholders with a significant cash premium for their shares. We believe this transaction is in the best interest of our shareholders,” he said. “Today’s announcement is the result of a comprehensive process in which the board of directors, with the assistance of management and our outside advisers, carefully considered strategic alternatives for our shareholders.”
Wireless Matrix got its start in 1991, first in the satellite communications business, later developing broad wireless expertise supplying corporate internet access and data services to businesses. In 2006, the company applied what it had learned to the fleet management space with its GPS tracker FleetOutlook, a vehicle tracking and fleet management reporting application. Revenue, however has flatlined; the $33.3-million the company did in fiscal 2012 was slightly worse than 2008′s $35.56 million. Earlier this year J. Richard Carlson, who had been the CEO of Wireless Matrix since 2004, stepped down and the company’s board was shuffled.
At press time, shares of Wireless Matrix were up 54.3% to $.54.