Taiwan-based GigaMedia (GIGM) says it has sold its legacy cable and corporate Internet service provider business to China Network Systems for approximately USD20 million in cash and an additional amount of up to USD5 million upon achievement of certain performance benchmarks during the two-year period following the closing.
GigaMedia expects the sale to close shortly, following customary regulatory approvals, and to record a one-time gain of approximately USD8 million as a result of the transaction. This disposal of the last remaining ISP business units effectively concludes GigaMedia's strategic restructuring begun after the arrival of a new management team in 2004.
"The broadband ISP business was the final legacy of the old GigaMedia, a non-core asset we are happy to dispose of," stated GigaMedia Limited President Thomas Hui.
