THE 25 TECH, CLEAN TECH AND HEALTHTECH COMPANIES APPROVED TO SELL THEIR LOSSES THROUGH THE 2020 NJ NET OPERATING LOSS PROGRAM

View Post

 April 3, 2021  Esther Surden

Each year, the New Jersey Economic Development Authority (NJEDA) releases the names of companies that participated in the Net Operating Loss (NOL) program. As the NJEDA says, the program is “hailed as a lifeline for New Jersey companies that have yet to reach profitability.”

Participants sell their New Jersey net operating losses and unused research-and-development (R&D) tax credits to unrelated profitable corporations for cash. The cash can then be used as working capital or to fund research. The NJEDA and the New Jersey Department of the Treasury’s Division of Taxation jointly administer the program.

Whenever the names of the companies are announced, NJTechWeekly.com lists the ones that are in the tech and clean tech segments, and we include their descriptions on our list. The idea is that these are among the most innovative emerging companies in the state, but they may take a long, unprofitable time to develop their products and commercialize them.  You may want to become familiar with these companies at this stage of their development. This source of non-dilutive capital is a helping hand to companies in their infancy. The average award in 2020 was $1.1 million.

The participants in 2020 shared approximately $55.4 million. The amount for those participating in 2021 will be increased to $75 million, authorized by the New Jersey Economic Recovery Act of 2020.  The Act also increased the lifetime cap for an individual applicant from $15 million to $20 million.

This year we also included some healthtech companies in our list, as these are companies involved in wearables; 3D printing; or improvements based on data, AI or machine learning.  For example, Angel Medical Systems has an implanted medical device that sends data to the physician.  If you are interested in the life sciences and biotech sector, the complete list of companies can be found here.

Most of the descriptions below were taken from the companies’ websites.

 CompanyCompany Headquarters/Base of Operations
(Municipality)
What the Companies Do
1*AilaresPrincetonAilares is a “financial technology company that leverages machine learning (ML) and artificial intelligence (AI) in the fields of wealth management, investment management and risk management. Leaders of Ailares have spent the last 20+ years working on, creating and managing highly automated analytical platforms for Fortune 500 companies as well as startup companies around the world. Before the terms ‘big data,’ ‘machine learning’ and ‘artificial intelligence’ were being tossed around, leaders of Ailares had been delving deep into grid computing, cloud-based business intelligence and alternative data applications in investment management, banking, fraud management and risk management.”
2Angel Medical SystemsEatontown“The Guardian System’s principle of operation is based on the well understood relationship between ST-segment changes and cardiac ischemia. Ischemia occurs when blood is not flowing due to blockage of a coronary artery and the heart does not have enough oxygen. The Guardian System continuously monitors the patient’s heart signal (known as the ‘electrogram’) for these ST-segment changes and provides notification using a triple-modality alerting when an abnormal change occurs.”
3AvlinoHolmdel“From automation to intelligent systems, we apply an AI-first approach that addresses every challenge with machine learning and deep learning techniques as the basis of our technology. Our Solutions work as a dynamic layer that stacks on top of rule-based systems making operations smarter while future-proofing workflows. We advance businesses leading the way for intelligent transformations with cutting-edge technology designed to expand existing capabilities.”
4*BloqcubePiscatawayBloqcube has a “transformative approach to efficient remote clinical trials.” It is “an integrated CTMFS platform for the remote management and acceleration of clinical trials with an integrated financial module for speedy payments.”
5Brilliant Light PowerCranbury“Brilliant Light Power has developed a new commercially competitive, non-polluting, plasma-based primary source of massive power from the conversion of hydrogen atoms of water molecules to dark matter, the previously unidentified matter that makes up most of the mass of the universe. The SunCell that was invented to harness the new power source catalytically converts hydrogen directly into dark matter form called Hydrino releasing brilliant high-energy light which is down-converted in energy to facilitate the production of electricity using commercially-available concentrator photovoltaic cells.”
6CircleBlackJersey City“CircleBlack delivers portfolio management and performance reporting, tightly integrated with your choice of technology and custodial feeds, to provide a 360-degree view of an advisor’s book of business.”  
7Eos Energy EnterprisesEdison“We’ve overcome some of the challenges of lithium ion, creating a positively ingenious solution that delivers a significant reduction in levelized cost of storage.”
8*Forefront TelecareHamilton“Forefront Telecare is a recognized national leader of Virtual Behavioral Health for Seniors across America. If a Senior has Medicare, Medicare Advantage or Medicaid and begins in a Hospital then moves to a Long Term Care Facility, including Skilled Nursing Homes or Assisted Living, or can return home for Home Health – Forefront will follow the senior patient. We produce superior outcomes with the same care and human connection for the patient and the facilities we serve.”
9*Fusion Recruiting LabsRed Bank“Fusion Recruiting Labs, Inc. builds employment tools that accelerate hiring processes and increase the efficiency of recruitment advertising campaigns for the fast-growing needs of Human Resources Departments. FusionRL’s suite of products gives employers the power to drive their candidate lead generation process to quickly fill open jobs, identify qualified leads and provide the best candidate experience.”
10Gadget SoftwareNewark“Gadget easily transforms PDF manuals into ADX connections which actually use the smart in your smartphone.”
11Hope Portal Services, Inc (DBA Hope Trust)Holmdel“Hope Trust takes a revolutionary approach to special needs planning and trust administration  … Through our technology, we know every issue and challenge facing each beneficiary. With an amazing team of Hope Care Coordinators trained to serve those with challenges, we actively seek solutions to social, medical, financial, legal, and daily living struggles.”
12*Interpace BiosciencesParsippany“Our Interpace Diagnostics business unit provides evidence-based, clinically beneficial molecular diagnostic tests and pathology services, including such widely respected tests as PancraGen, ThyGeNext, ThyraMir, RespriDX and BarreGen. Our Interpace Pharma Solutions business supports clinical trials by providing lab testing, data management, project management, and biorepository services to biopharmaceutical companies, enabling them to effectively integrate pharmacogenomics into their drug development and clinical trial programs to deliver safer, more effective drugs to market faster.”
13IoTechaCranbury“IoTecha was born at the nexus of several disruptive trends and is focused on IoT as an enabling technology for the future of transportation electrification and power grid modernization.”
14Miami International HoldingsPrinceton“Miami International Securities Exchange, LLC (MIAX), MIAX PEARL, LLC (MIAX PEARL) and MIAX Emerald, LLC (MIAX Emerald and together with MIAX and MIAX PEARL, the MIAX Exchange Group) are wholly-owned subsidiaries of Miami International Holdings, Inc. (MIH). The MIAX Exchange Group has deep rooted experience in developing, operating and trading on exchanges. The initial focus of MIH was to leverage management’s expertise and relationships in the equity options space to launch MIAX, a fully electronic options exchange for the trading of OCC issued standardized options on equities and ETFs. Trading on MIAX commenced on December 7, 2012 following its approval from the SEC as a National Securities Exchange. MIAX now lists and trades options on over 2,600 multi-listed classes.
15Ocean Power Technologies,Monroe Township“Information from the oceans can help us understand climate change and natural disasters while also providing sources for food and energy. Persistent, reliable and cost-effective instrumentation, communication, and power sources are necessary to support the maritime activities to obtain such information. Present solutions and technologies suffer from the need for costly and repetitive maintenance as well as the rather limited electric power output they provide. The PowerBuoy system integrates patented technologies in hydrodynamics, electronics, energy conversion, and computer control systems to extract the natural energy in ocean waves. The result is a leading edge, ocean-tested, proprietary autonomous system that turns wave power into reliable, clean, and environmentally beneficial electricity for offshore applications.”
16*Onkos Surgical IncorporatedParsippany“Onkos Surgical is a privately held, specialty medtech company founded in 2015. We believe that individuals with cancer requiring surgery deserve solutions designed specifically for them. This principle is the driving force behind our Precision Oncology initiatives. Built on a digital platform, our solutions are rooted in unmatched expertise in patient imaging analysis, personalized surgical planning, and the latest advancements in 3D printing. At Onkos, we are passionate about reducing complexity for our customers and addressing the clinical challenges associated with tumor surgery.”
17*Princeton IdentityHamilton“Princeton Identity is a global leader in biometric identity management, providing iris scanning and facial recognition systems for access control and security across commercial enterprises.”
18Solidia TechnologiesPiscataway“Solidia is a cement and concrete technology company, offering patented green solutions that make it easy and profitable to use CO2 to create superior, sustainable building materials. The technology has the potential to eliminate a minimum of 1.5 gigatonnes of CO2 each year.  Solidia provides two core technologies: 1) A sustainable cement manufacturing technology, which can be produced in traditional cement kilns using less energy, reducing greenhouse gas emissions during manufacture by 30-40%; 2) A sustainable concrete curing technology, curing concrete with CO2 instead of water, permanently and safely consuming 240 kg of CO2, and potentially saving 3 trillion liters of fresh water every year.
19*Sunbird Software, Inc.Somerset Sunbird is a data center solutions company. “Since 2007, Sunbird products are being used globally by 1300+ customers across hundreds of thousands of racks, managing millions of assets, and monitoring billions of data points each and every day. From colo to owner operated, medium to large, private to public and non-profit, you can find Sunbird solutions helping customers improve availability, efficiency, and better utilize their data center assets.”
20*TallyxPrincetonTallvx is developing and “Open Financial Supply Chain Marketplace that puts Corporates at the center, goes beyond financing, coupled with Tallyx 1*2*3 that offers forward-looking win-win-win value proposition for Anchors, Small and Medium Enterprises (SME’s) and Financial Institutions.”
21*ThrotleRed Bank“Throtle offers the best in class identity and onboarding solutions. We drive personalization and relevant marketing with the most accurate 1:1 view of your customers, across multiple channels and devices.”
22TrialScopeJersey City“TrialScope gives your clinical trial data superpowers. Ensure disclosure compliance, maximize trial transparency, improve patient engagement, and accelerate study recruitment like never before.”
23*TrueFortWeehawken“TrueFort was founded on a mission to help IT organizations connect business security policy with operational reality. We help reduce cost and risk by taking an application-first approach that offers comprehensive application protection – not simply disparate controls – for real-time visibility and analysis, protection and better communication across business, IT, and security teams.”
24United Silicon Carbide Inc. (USC)PrincetonThe company’s vision is “to accelerate SiC adoption using our innovative device technology, enabling our customers to deliver industry transforming levels of power efficiency to society’s most advanced applications, particularly in mobility, IT infrastructure and renewable energy.”
25WellsheetNewark“Wellsheet envisions a much different future, one in which providers make decisions with a comprehensive view of relevant information, structured precisely for their needs. Predicting providers’ information needs is a tremendous technology challenge, only possible through exceptional engineering and design talent, the latest advances in machine learning, and partnership with EHR vendors. Wellsheet brings these together to deliver the first comprehensive workflow support system that learns and anticipates providers’ needs.”

*First-time participants in the NOL program.

This post first appeared in NJTechWeekly, Esther Surden, Founder & Editor-in-Chief. It is reposted here with her permission.

Coplay PA sports info business raises “significant investment”

Coplay’s Cement Kilns (Wikipedia)

Tom Paine

Sports Info Systems Solutions, a Coplay, PA-based sports information vendor, has raised its first round of outside financing. It raised “a significant investment” from Audeo Capital, a Boston-based technology-focused investment firm, with others participating.

First, I had to find out where Coplay is. Its actually just a. few mies north of Allentown, in Lehigh County. (I’ve never been north of Allentown.) Its named after an Indian chief. Saquon Barkley, former Penn State and current New York Giants running back, is from Coplay.

John Dewan co-founded SIS as Baseball Info Solutions in 2002 after working multiple decades in sports statistics as the co-founder of STATS Inc. It changed its name after expanding into football, then basketball stats.

Though it provides stats to professional teams and leagues, it appears that SIS’ target for growth is the sports gaming market, which is expected to boom.

“This move is a sure bet – pun intended,” Dewan is quoted ax saying.

Dell Technologies may sell Boomi

Tom Paine

Dell Technologies is considering a sale of Chesterbrook-based Dell Boomi, Bloomberg reported tonight.

This follows news that Dell plans a spinoff of its $52 billion stake in VMware.

Boomi could be valued at as much of $3 billion, Bloomberg reports, citing sources.

Dell is said to be working with a financial adviser on a divestiture of Boomi. Talk are still at an early stage.

While there are several iPaaS competitors to Dell Boomi, MuleSoft is probably the closest. MuleSoft was acquired by Salesforce for $6.5 billion in 2018.

Dell acquired Boomi, founded by Rick Nucci in 2000, in 2010. The Dell Boomi website says that “Boomi has become the fastest growing acquisition in Dell’s history.”

Linode competitor DigitalOcean goes public

Tom Paine

DigitalOcean, the New York-based virtual private server provider that probably is Linode’s closest competitor, completed its IPO on March 24, ending the day with a market cap of $4.5 billion, down almost 10% from its opening.

DigitalOcean had revenue in 2020 of $318 million, up 24% year-over-year. Founded in 2011, DigitalOcean grew with venture capital funding almost from the start.. It raised $455.6 miliion in outside funding before going public.

Chris Akers, Linode’s founder & CEO, has always taken an opposite path, avoiding equity financing. He may have sacrificed some growth. I don’t have a guesstimate for Linode revenue except to say its probably well in excess of $100 million per year now. Using the same revenue multiple as for Digital Ocean, that could easily put Linode’s implied valuation over $1 billion. That might be quite possible under current market conditions.

Also, DigitalOcean has been running a substantial loss each year, while Linode is at least self-funding and likely profitable. And obviously Akers has avoided the dilution and loss of control that comes with outside investors.

Linode did receive a $4 million PPP loan in April 2020 for payroll.

Its inevitable that Linode, Digital Ocean and others in this class will move slightly upmarket to push against the low-end of the hyperscaler market. I also see value in these vendors’ customer bases as a certain percentage of them, being developers, will grow over time. This may make them attractive to companies such as Salesforce, Oracle and the big three of the cloud vendors, who would like them to adopt their architectures. And they would be relatively inexpensive buys.

I noticed that DigitalOcean’s CFO is Bill Sorenson, who was King of Prussia-based Qlik’s CFO when it went public in 2010.

The VPS market is a worldwide market, and must be viewed globally.

Also, keep an eye out for IONOS, acquired by the German vendor 1&1 Ionos in 2018 , which has its US headquarters in Chesterbrook.

Dragon Systems lives on as part of Nuance Communications. But how did Nuance come to own it?

Tom Paine

As Microsoft and Nuance Communications appear close to a deal, its a good time to revisit the tale of Carnegie-Mellon professor James Baker, and his wife Janet, a CMU PhD and researcher, who sold the fruit of their live’s work, Dragon Systems, to  Lernout & Hauspie, in 2000, in an all-stock transaction, only to find that Lernout & Hauspie was a giant fraud and also bankrupt..

Nuance, the eventual owner of Dragon Systems, isn’t the bad guy here; it was Lernout & Hauspie, plus Goldman Sachs, the Bakers’ advisor..

Its an object lesson for any entrepreneur who has an opportunity to sell a business. Be certain of what you’re getting for it, and don’t trust any middleman to do the right thing..

Nuance is reported to be worth about $16 billion to Microsoft, and Dragon seems to be the part of the business thats really growing.

This is an aftermath report by DealBook after a failed suit by the Bakers against Goldman Sachs years later.

Qlik Collaborates with AWS to Accelerate Cloud Analytics with SAP Data

Collaborative Solution Helps Enterprises Increase Value of Analytics-Ready SAP Data on AWS (Press Release)

April 07, 2021 08:30 ET | Source: Qlik Technologies, Inc.


  • .

PHILADELPHIA, April 07, 2021 (GLOBE NEWSWIRE) — Qlik® announced today a further expansion of its relationship with Amazon Web Services (AWS) with the launch of a collaborative solution that will help enterprises drive more value from SAP data with cloud analytics. Customers can now seamlessly and easily leverage Qlik Data Integration to deliver real-time, analytics-ready data from their SAP systems into AWS, accelerating and enabling cloud data warehousing, data lakes and machine learning initiatives.

“Customers are eager to bring SAP data into AWS and leverage AWS as a platform of innovation to increase the power of data-driven decision making across their organizations,” said Fernando Castillo, Head of SAP Partner Network and SAP Alliance at AWS. “We are pleased to work with Qlik on the Qlik Data Integration solution, which is designed to help customers accelerate the migration of SAP data at scale on AWS, combine it with non-SAP data, and enhance the impact and value of all their data.”

Qlik has more than a decade of expertise in accessing and transforming SAP data for analysis. Qlik Data Integration unlocks and delivers SAP’s complex data structures into formats optimized for AWS, as well as automates the process of generating analytics-ready data sets for data warehousing or data lakes. The result is accelerated time to value and reduced total cost of ownership for cloud analytic projects, including the benefit of bringing SAP data with non-SAP data together for more valuable real-time and predictive analytics.

“The ability to more easily access and integrate SAP data for analysis to enhance decision-making unlocks a significant source of value from one of our most important data assets,” said Clint Clark, VP Finance Performance Systems and Data, Schneider Electric. “With Qlik Data Integration feeding our AWS environment with SAP, we are better positioned to unlock the value of our SAP data as part of our larger journey to being fully data-driven across the organization.”

The Qlik Data Integration solution on AWS provides customers with:

  • Real-time ingestion (Change Data Capture) of SAP data into many AWS services
  • Decoding of SAP proprietary data structures
  • Automated mapping and data model generation for analytics
  • Support for all core and industry-specific SAP modules
  • Support for SAP running on-premises or in the cloud
  • Expertise in SAP data management, integration and analytics
  • Ability to purchase in AWS Marketplace

“Enterprises are looking for a cost-effective, agile and modern way to bring their SAP data into their cloud analytics strategies. Qlik Data Integration is uniquely positioned to help customers looking to deliver real-time data pipelines and optimized integration with SAP and AWS,” said Itamar Ankorion, SVP of Technology Alliances at Qlik. “We are excited about our continuing relationship with AWS, and delivering customers a proven solution for driving SAP data into the cloud for analysis and action.”

To learn more about Qlik’s data analytics and data integration solutions with AWS, visit https://www.qlik.com/us/products/technology/amazon-web-services. To learn more about Qlik’s unique ability to maximize the value of SAP data visit: https://www.qlik.com/us/products/technology/sap.

About Qlik

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private SaaS company, Qlik provides an end-to-end, real-time data integration and analytics cloud platform to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik does business in more than 100 countries and serves over 50,000 customers around the world.   

© 2021 QlikTech International AB. All rights reserved. All company and/or product names may be trade names, trademarks and/or registered trademarks of the respective owners with which they are associated.

The information provided herein is subject to change without notice. In addition, the development, release and timing of any product or functionality described herein remain at the sole discretion of Qlik and should not be relied upon in making a purchasing decision, nor as a representation, warranty or commitment to deliver specific products or functionality in the future.

Media Contact:
Derek Lyons
derek.lyons@qlik.com
617-658-5310

Tendo Systems’ vision for transforming healthcare

Tom Paine

Tendo Systems Builds Radical Collaborations to Help Transform Healthcare” is the headline of Tendo Systems’ introductory press release. It certainly sets forth a vision of a different approach to delivering healthcare, aiming to break out of the mold..

Not that others haven’t had similar visions.

One example is Haven, the joint venture between Amazon, Berkshire Hathaway, and JP Morgan Chase, which decided to dissolve at the beginning of 2021. The partners seemed happier pursuing their own separate initiatives.

While breadth of vision is great, my guess is a startup that concentrates on a few closely related processes at first has the best chance to succeed. Though a degree of integration across functions is important.

Tendo, founded by longtime Chester County residents (and siblings) Dan & Jennifer Goldsmith, is a Philly-based company, though its somewhat virtual right now. A few years back, the Goldsmiths played important roles at Veeva Systems, working on innovative new cloud.products that helped Veeva’a valuation grow to $40 billion today. (Much of Silicon Valley-based Veeva’s product development came out of its Radnor office.)

Then the Goldsmiths went on to run Utah-based learning management system (LMS) platform Instructure, with Dan as CEO and Jennifer as Chief Strategy Officer. But that came to an end in early 2020, as the Instructure board accepted a $2 billion buyout offer from Thoma Bravo which involved a change in direction.Then they spent a year planning for what would become Tendo Systems.

During the same period, west coast VC firm General Catalyst (which has huge stakes in healthcare; Livongo, Oscar, BrightInsight are examples) managing director Hemant Taneja got to know Stephen Klasko, MD, MBA, CEO of Philly-based Jefferson Health. The two co-authored a book, UnHealthcare: A Manifesto for Health Assurance, preaching a collaboration between traditional academic health system and Silicon Valley venture investment. 

Besides co-authoring the book, the two collaborated on forming a SPAC, along with ex-Livongo execs who sold Livongo for $18.5 billion . Health Assurance Acquisition Corp is said to be targeting a San Francisco-based healthcare tech company to merge with. They also got to know the Goldsmiths.

General Catalyst is at this point the sole institutional backer of Tendo. The funding is significant; no one will say how much but it sounds like Tendo won’t have to go back to raising capital anytime soon. Jefferson, through its Jefferson Strategic Ventures, has not invested though it may be constrained by its own financial pressures.

Jefferson has had a revenue share interest in Livongo from a marketing fee.

Tendo is ramping up quickly, with around 35 people already onboard with plans to reach 100 by year end. Tendo is intended to be designed around the healthcare consumer’s vantage point, not that of the organizations he or she is connected to. An app would eventually interface with multiple healthcare organizations, with the possibility of the consumer seeing one view across electronic health records from different institutions. (Google is working on that, but for the clinician rather than the patient.) Jefferson will serve as the first healthcare organization that Tendo is collaborating with.

Jennifer Goldsmith, whom I spoke with, thinks of Tendo as “a digital engagement platform for patients, clinicians, and caregivers.” The venture plans to address “pain points”, or points of friction, in consumer healthcare. Appointment scheduling, followups, and other processes would be streamlined. My guess is Tendo will start with a few functions and add more over time.

“Large-scale transformation requires bold vision, strong execution, and deep collaboration across multiple healthcare constituencies,” said Dan Goldsmith, CEO of Tendo, in a press release. “Tendo is proud to partner with organizations like Jefferson Health and General Catalyst as we work together to make healthcare more connected, accessible, and equitable.”

Jennifer Goldsmith indicated that some product will be out by late 2021.

.

11

CommScope Announces Plan to Spin-Off its Home Networks Business into Independent Public Company

Provides CommScope NEXT Update: Implements Cost Reduction Actions to Drive Greater Levels of Efficiency and GrowthApril 08, 2021 07:30 AM Eastern Daylight Time

HICKORY, N.C.–(BUSINESS WIRE)–CommScope Holding Company, Inc. (NASDAQ: COMM), a global leader in connectivity solutions for communications networks, today announced its plan to spin-off its Home Networks business and other initiatives to reduce operating costs throughout the Company.

“Since I joined CommScope last October, the Board and management team have been undertaking a comprehensive review of our portfolio of assets and how each contributes to our long-term growth strategy”Tweet this

Together, the planned separation of CommScope’s Home Networks business and operating expense reduction represent early steps in the Company’s CommScope NEXT strategy to optimize the business portfolio, drive above-market growth, and control costs. The separation is intended to be executed through a tax-free spin-off to CommScope shareholders to form a new and independent publicly traded company. The separation is expected to be completed by the end of the first quarter of 2022.

“Since I joined CommScope last October, the Board and management team have been undertaking a comprehensive review of our portfolio of assets and how each contributes to our long-term growth strategy,” said Chuck Treadway, president and chief executive officer. “As we proceeded with this review, it became clear that the Home Networks business’ distinct strategy, growth characteristics, investment requirements and returns on invested capital are not aligned with the rest of our portfolio. We believe that Home Networks will be better positioned to deliver superior home and consumer-oriented products as an independent company. In addition, we are moving quickly to streamline costs to create greater financial flexibility to invest in our growth. We expect the cost reduction actions we are taking in core CommScope to, at a minimum, offset Home Networks’ adjusted EBITDA and create savings we can reinvest in our business, which should result in post-spin leverage within core CommScope at no more than current levels.”

Mr. Treadway concluded, “With today’s announcements, our CommScope NEXT strategy is well underway, and, as we move forward, growth, cost control and portfolio optimization will continue to be our priorities. We remain excited about CommScope’s potential, and with the core elements of our strategy intact, we are confident in our ability to deliver innovative solutions for network convergence for customers around the world.”

Compelling Benefits of the Separation

The planned spin-off will allow CommScope and Home Networks to focus on innovation and pursue strategic market opportunities, accelerating growth and unlocking greater value for their customers. Key benefits of the separation include:

  • Creating a clearer growth trajectory for CommScope, as well as greater opportunity for margin expansion, while focusing on providing market-leading solutions in wireless communications, broadband delivery and enterprise networking;
  • Reducing complexity within CommScope, allowing it to focus on the core elements of the portfolio that will drive growth in the evolution of the networks it serves;
  • Creating a standalone Home Networks business, a leading connected home solutions provider with an optimized cost structure and focused R&D and Sales teams, enabling an accelerated pace of innovation unlocking strategic value and growth in a “Connected Home” future;
  • Providing Home Networks with greater focus and flexibility to develop its own technologies, go-to-market strategy and a best-in-class manufacturing model to better deliver home and consumer products; and
  • Allowing CommScope and Home Networks to each pursue separate strategies, creating two distinct identities and more targeted investment opportunities, providing Home Networks with greater opportunities to access capital.

CommScope, Driving Global Connectivity

Following the completion of the spin-off transaction, CommScope will be composed of the following three business segments:

  • Broadband Networks: Dedicated to serving the telco and cable provider broadband market as a leading equipment manufacturer. The segment is focused on growing its current portfolio and deployment of DAA and virtualized platforms and driving investments to expand fiber capacity, fiber connectivity and network orchestration.
  • Venue and Campus Networks: Targeting both public and private networks for campuses, venues, data centers, and buildings. Venue and Campus Networks is focused on driving performance in its RUCKUS Wi-Fi 6 and cloud control platforms, ONECELL features to capitalize on 5G growth and virtualization, and driving high-density expansion in data centers.
  • Outdoor Wireless Networks: Focused on the Macro and Metro Cell businesses and building metro cell power solutions and modularity design innovation. The segment is also working on the development of new technologies in cell site connectivity and other technologies to support telco carriers building their 4G and 5G networks.

CommScope will continue to be led by Chuck Treadway, president and CEO, and its current management team.

Home Networks, a Leading Provider of Connected Home, Digital Life, & Entertainment Solutions

With its long heritage of offering market-leading technologies and solutions, Home Networks will be well positioned to deliver superior home and consumer-oriented products and to unlock substantial value across its broad product lines and customer base.

Upon completion of the separation, Joe Chow, Home Networks senior vice president, will become the chief executive officer of the stand-alone Home Networks company. The Board of Directors, management, company name and headquarters will be announced after they are finalized. The new, independent company is expected to be listed on the NASDAQ stock exchange upon completion of the separation.

Transaction Details

CommScope anticipates that the transaction will be in the form of a distribution to CommScope shareholders of 100% of the stock of Home Networks, a new, independent publicly traded company, which is intended to be tax-free to U.S. shareholders for U.S. federal income tax purposes.

CommScope currently expects the transaction will be completed by the end of the first quarter of 2022, subject to market, regulatory and certain other conditions, including final approval of CommScope’s Board of Directors. There can be no assurance regarding the ultimate timing of the proposed transaction or that the transaction will be completed.

Advisors

J.P. Morgan is serving as financial advisor, and Alston & Bird and Baker McKenzie LLP are acting as legal advisors to CommScope.

Conference Call and Webcast

CommScope will host a conference call today at 8:30 am ET to discuss this announcement. The conference call will also be webcast.

To participate in the conference call, dial +1 844-397-6169 (US and Canada only) or +1 478-219-0508. The conference identification number is 5858113. Please plan to dial in 15 minutes before the start of the call to facilitate a timely connection. The live, listen-only audio of the call and corresponding presentation will be available through a link on CommScope’s Investor Relations page.

A webcast replay will be archived on CommScope’s website for a limited period following the conference call.

About CommScope:

CommScope (NASDAQ: COMM) is pushing the boundaries of technology to create the world’s most advanced wired and wireless networks. Our global team of employees, innovators and technologists empower customers to anticipate what’s next and invent what’s possible. Discover more at www.commscope.com.

Follow us on Twitter and LinkedIn and like us on Facebook.

Sign up for our press releases and blog posts.