Acquisition Could Mean Growth For Chelmsford Firm
After more than a decade in Chelmsford, Sycamore Networks, Inc. transitioned from a publicly-traded company to private ownership today, but the broadband management business is expected to continue in town, and probably expand services, according to company officials.
Flash In The Pan
Founded in 1998, Sycamore had a huge IPO the following year, with $38 shares popping as high as $271.
Sycamore saw its revenue shoot up to over nearly $375 million in the midst of the Internet boom at the turn of the century.
But those numbers couldn't be sustained. Sales fell below $66 million for the next four years, rebounded into the $156-million range in 2007 and have been down since.
Sale Details
Sycamore stockholders voted to sell the company's assets in January, and the board of directors voted Monday to finalize the deal and delist its stock with NASDAQ, effective March 7, According to filings with the Securities and Exchange Commission.
Marlin Equity Partners, a Los Angeles-based investment firm, bought Sycamore for $18.75 million, it announced. Sycamore is now known as Sycamore Networks Solutions, and will be run by a new CEO, John Scully, who was formerly vice president at the company.
Doug Bayerd, a principal at Marlin, said in a statement that the Sycamore purchase is a "strategic addition" to the firm's portfolio, and that Sycamore's business will grow, too.
"We plan to make the necessary investments to further enhance Sycamore's current product offerings and continue to deliver the long-term value that Sycamore's premier customer base has come to expect," Bayerd said. "In addition, we are committed to building on Sycamore's market leading position through strategic acquisitions."
Marlin officials did not respond to an interview request on Sycamore's future.
Chelmsford Presence Will Remain
Scott Larsen, a spokesman for Sycamore, said company officials were not available for comment, but said in an e-mailed statement that headquarters will remain in Chelmsford, and the company will continue delivering its services under its new owners.
Larsen pointed to a new contract with KORAIL, the company that runs South Korea's national railway, as evidence of its success under new ownership. According to the company, Sycamore will scale KORAIL's communications infrastructure under the contract, which was announced in February.
Larsen declined to discuss potential new products and services to be added to Sycamore's suite under new ownership, but said they will continue to serve the same types of clients, including large enterprises, government agencies and utility providers.
Image source: Freedigitalphotos.net
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