Norsat International To Sell Distribution Subsidiary, Norsat America
Norsat International Inc. [NSAT] said it plans to sell its Norsat America Inc. wholly owned subsidiary in order to intensify its focus on its broadband and VSAT businesses.
It has retained a U.S. investment bank to find a buyer. Beginning in the third quarter, the company will report Norsat American as a discontinued operation.
Norsat America distributes DirecTv [GMH] DBS, DirecPC Internet via satellite and other entertainment products through a network of 14 branch offices and some 3,500 independent dealers. DirecTv and DirecPC are products of Hughes Electronics Inc. [GMH].
“Norsat America’s wholesale distribution model, handling products of companies other than Norsat, is very different from the model we have developed for our broadband and VSAT businesses, who products are based on Norsat’s technology,” said Robert Bucher, Norsat International’s president and CEO.
“Our resources are best concentrated in those areas which directly benefit from our excellent engineering talent, proprietary technology and established brand name,” he added.