Friday, April 10, 2015

Sandvine Sold its Holding in Xerocole to Akamai

Sandvine released yesterday its Q1 results (revenues of $32.4M - here). The release also states that "Net income for the quarter includes $2.8 million of other income related to a gain on the disposition of an investment in a private company".

Sandvine's financial report explains that "On February 27, 2015, the Company sold its preferred share investment in a private company for consideration of $3,057. Consequently, the Company has recognized a gain related to the disposition of its preferred share investment of $2,778. Subsequent to February 28, 2015 the Company collected $2,595 with the balance held in escrow and due August 27, 2016" (here).

According to SeekingAlpha's transcript of the earning call (See "Sandvine's (SNVNF) CEO Dave Caputo on Q1 2015 Results - Earnings Call Transcript" - here) - "approximately $2.8 million of current quarter net income resulted from a gain on the sale of a minority investment in Duracool, which related to a spin out of our 2007 acquisition of Simplicita. Duracool was recently acquired by [indiscernible]".

To be more exact, the name of the private company is Xerocole. 

Simplicita built behavioral advertising solutions and was acquired by Sandvine in 2007, Xerocole was spawn-off in 2010 (see "Sandvine Spins-off Simplicita as Xerocole" - here). Its site explains that its mission is to "simply deliver, for service providers, the smartest and most personal DNS platform on the planet We relentlessly pursue DNS technology and service excellence and perfect how users control the right websites and right time for each. We believe that a great Internet experience begins with great DNS technology and services".
On March 2nd, Akamai announced it has acquired Xerocole (see 'Akamai Acquires Xerocole" - here) - explaining that "Xerocole's intelligent recursive DNS technology was designed to provide carriers with security, speed, and the ability to dynamically and flexibly set DNS policy and user preferences".

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