Acterna Sells Off Itronix

GERMANTOWN, Md. -- Acterna Corporation today announced that the U.S. Bankruptcy Court for the Southern District of New York has approved the previously announced sale of its subsidiary, Itronix Corporation, to Golden Gate Capital for $40 million in cash plus the assumption of certain liabilities. Acterna anticipates that the sale transaction will close within the next two weeks. "The Bankruptcy Court's approval of the Itronix sale represents another important step forward for Acterna, its dedicated employees and customers," said John Peeler, Acterna's president and CEO. "Proceeds from this transaction, together with cash on hand, provide Acterna with ample liquidity to fund its operations and serve its customers upon emergence from chapter 11 in early October." Miller Buckfire Lewis Ying & Co., LLC, financial advisor to Acterna, advised on the transaction. Weil, Gotshal & Manges LLP provided legal counsel. In a separate relesae: SPOKANE, Wash. -- Itronix Corporation, a leading developer of wireless, rugged mobile computing systems, announced today that it is being acquired by Golden Gate Capital, a $700 million private equity firm dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses. Partnering with Golden Gate Capital enables Itronix to become a financially strong, independent private company and to focus exclusively on building its market leadership position in wireless rugged computing for enterprise applications. As a newly independent company, Itronix will remain committed to outstanding customer service and support, superior technology innovation, and profitable growth. Golden Gate Capital purchased Itronix from Acterna Corporation for $40 million and the assumption of liabilities. The transaction is expected to be completed within the next two weeks. "Today's acquisition news is extremely positive and promising for all Itronix stakeholders -- whether you are an Itronix customer, employee, supplier, or business partner," said Tom Turner, president and CEO of Itronix. "The 'new' Itronix is a privately held, well capitalized company with great customers, best-in-class wireless, rugged products and services, and an outstanding team of people at the management level and throughout the organization. I am confident that our independent status will lead to even greater opportunity and growth for Itronix. We will continue to focus on our customers, innovate in everything we do, grow our market share and mindshare, and manage the company for continued profitable growth." Golden Gate Capital purchased Itronix from its parent company, Acterna Corporation, which is the world's second largest communications test and measurement company. In accordance with Acterna's reorganization plan under Chapter 11 protection, the sale was conducted pursuant to section 363 of the U.S. Bankruptcy Code and was approved today by the U.S. Bankruptcy Court for the Southern District of New York. "We are honored to add a company the caliber of Itronix to our portfolio," said John Knoll, principal of Golden Gate Capital. "Itronix already has a solid foundation for ongoing success and impressive growth. In addition to its outstanding management team, award-winning products and services, and impressive customer base, Itronix now has our financial support to help the company achieve its growth objectives and further enhance the company's value." With customers that include hundreds of Global 2000 companies and world recognized organizations, such as Sears, U.S. Army, U.S. Air Force, U.S. Navy, U.S. Marines, FBI, BellSouth, Verizon, and Florida Power & Light, Itronix is one of the world's leading providers of wireless, rugged mobile computing solutions. According to recent research by Venture Development Corporation (VDC), Itronix is currently ranked the number one fully rugged notebook computer provider in Europe and number two in North America. Given Itronix's substantial and impressive financial performance to date -- growing revenues from $500,000 at its inception in 1992 to over $140 million today -- the "new" Itronix will be even better positioned to maximize its track record of success, growth and profitability. In addition to staying focused on its core customer values, the "new" Itronix will invest in new product development, focus on key implementation services, and strategically grow its market share in specific vertical markets throughout the world. Operating as an independent company, Itronix worldwide headquarters will remain in Spokane, Washington, and its European operations will remain unchanged with offices located in Coventry, U.K., Frankfurt, Germany, and Paris, France. In addition, Itronix's seasoned executive management team, led by Tom Turner as president and CEO, will remain intact and will have the support of Golden Gate Capital's team of experienced management professionals. Acterna Corp. Itronix Corp.