iPass Sells Unity Business Unit To Tolt Solutions For $28.2 Million

iPass Inc.

, the global Wi-Fi roaming leader, announced today it has completed the successful sale of its Unity Managed Network Services business unit for $28.2 million to Tolt Solutions. This marks the culmination of a competitive process initiated in February 2014, providing increased value to iPass shareholders and a natural transition for Unity customers. "We are pleased with the process and the outcome and we believe Tolt makes an ideal home for the Unity business and its customers," said Evan Kaplan, President and CEO of iPass. "The sale of Unity enables us to focus exclusively on our Wi-Fi Open Mobile business. With annual Open Mobile revenue growth of 77% in 2013, iPass is well positioned to leverage our unique assets and strengthened balance sheet to drive consistent growth in the expanding market for global Wi-Fi." Connectivity has become central to people's personal and business lives as evidenced by the dramatic rise in data consumption. The vast majority of that consumption is on Wi-Fi networks driven by rapid growth in public Wi-Fi deployments and the widespread availability of Wi-Fi on connected devices. The iPass Business Traveler 2.0 service and Open Mobile offerings are positioned to help people easily and cost effectively get connected on Wi-Fi. Growing from several thousand users a few years ago, today the service is used by over 1.6 million people a year to get connected in airports, airplanes, trains, hotels, and public venues around the globe. This transaction marks a new stage for iPass. With a singular focus on Wi-Fi mobility, the company plans to further expand its market leading 2.7 million hotspot Wi-Fi network, enhance its industry leading global authentication fabric, and introduce significant improvements to its iOS, Android and Windows user experiences. In addition, the company will continue to expand its customer base and build deeper relationships with its over 700 current customers including enterprises like Cisco, Oracle, SAP and Nestle as well as service providers like Deutsche Telekom, Orange and Telstra. Guidance Update. iPass is reaffirming its guidance for second quarter 2014 results for the entire Company, including Unity, as described in its first quarter press release of May 7, 2014. iPass intends to discuss this transaction in detail on its upcoming second quarter 2014 conference call in early August.