High Wire Networks, a provider of managed cybersecurity and technology enablement services, announced the sale of its legacy staffing business in a $11.5 million transaction. The sale consisted primarily of the elimination of debt and cancellation of certain shares of its series D preferred equity.
“While our staffing subsidiary had been growing steadily, this was a strategic sale at a significant multiple to our original acquisition price in 2021,” said Mark Porter, CEO of High Wire Networks. “Moreover, its divestiture allows us to focus our attention and financial resources on our core cybersecurity and technology enablement business.”
The company noted the transaction eliminates approximately $325,000 in monthly debt payments, or $3.9 million on an annualized basis.
The transaction also reduces fully diluted common shares by more than 16% through the elimination of conversion provisions associated with the debt and preferred equity, according to the company.