PHILADELPHIA, PA – September 4, 2013 – Alteva (NYSE MKT: ALTV), a premier provider of hosted Unified Communications-as-a-Service (UCaaS), announces the sale of substantially all of the assets of its USA Datanet business effective September 1, 2013 to an undisclosed buyer for approximately $600,000, subject to customary post-closing adjustments.
This transaction will further support Alteva’s growth strategy by creating internal efficiencies and streamlining the UCaaS business by eliminating a non-core platform. Although the Company expects to incur some nonrecurring charges related to the transition of the business during the remainder of 2013, the reduction of costs gained by this asset sale is expected to improve the overall profitability of the business by year-end.
“The sale of these assets is a win for both parties,” states David Cuthbert, Alteva’s President & CEO. “Although we will lose approximately $2 million of legacy revenue on an annualized basis, the non-core platform is not part of our ongoing growth strategy. The legacy costs associated with this platform have been negatively impacting the profitability of our UCaaS segment. This transaction is another positive milestone for Alteva as we continue our focus on growing the business and overall operational efficiency.”
