Virtual private network management software developer Orchestream Holdings Plc has accepted a 7.9m pound ($12.5m) takeover bid by MetaSolv Inc in an all-cash deal.
A takeover has been inevitable for some time as the VPN market has been slow to take off, and with rising losses and a puny revenue, Orchestream acknowledged last month that it needed to find a buyer or find new sources of finance.
Plano, Texas-based Metasolv develops order management and service provisioning software for telecom and internet services providers and has, like most companies in the sector, been struggling after cut-backs in spending by carriers.
In the first nine months of its current financial year to September 30, it reported a net loss of $55.6m, down from income of $3.2m on revenue down 33.7% at $67.6m.
It does have $60.9m in the bank, but its share price has drifted from $8.74 to $1.89 over the past year. With a market value of just $71.3m Metasolv is itself vulnerable to consolidation in a contracting sector.