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Novation to Sell Corvisa to ShoreTel

Written by Jeff Owen | Dec 21, 2015 5:00:00 AM
Novation to Focus on Taking Advantage of Large Deferred Tax Asset
KANSAS CITY, MO--(Marketwired - Dec 21, 2015) - Novation Companies, Inc. (OTCQB: NOVC) ("Novation") today announced that it is selling Corvisa LLC to ShoreTel, Inc. (NASDAQ: SHOR). ShoreTel will pay $8.5 million in cash to acquire 100% of the outstanding membership interests of Corvisa. The transaction is expected to close early in 2016 and is subject to customary closing conditions. Corvisa provides cloud communications solutions for businesses. Corvisa's products include contact center software, business phone systems and connectivity services along with a proprietary development platform. ShoreTel is a provider of hosted  phone systems and unified communications solutions. "ShoreTel's backing and strong market position will significantly expand the opportunities for Corvisa and the technologies that have been built," said Rodney Schwatken, CEO of Novation. "The sale is good news for Novation as it allows the company to significantly reduce its net cash outflow and re-allocate resources to focus on areas that align with the Board's strategic direction." More at www.novationcompanies.com and www.shoretel.com