Client Profile

Verso Technologies, Inc. ('Verso' or the 'Company') is a global provider of next generation network solutions that offers a core-to-edge product portfolio for telecommunications service providers and enterprise organizations. End users of its products range from government agencies to corporate entities. Verso has installations in more than 95 countries and its products are sold either through its direct sales organization or through a well established network of domestic and international partners. The Company is comprised of four major businesses: Access Device Business, Mobile Backhaul Business, VoIP Application/Switching Business, and Network Monitoring and Security Business. Verso is headquartered in Atlanta, Georgia.

Situation

Due to financial difficulties stemming from unsuccessful post merger integrations, the Company filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Georgia, Atlanta division on April 25, 2008 and had been operating as a debtor-in-possession since that time.

Solution

SSG was retained as Verso’s exclusive investment banker to conduct a sale of each of the businesses pursuant to Section 363 of the U.S. Bankruptcy Code. In order to maximize the value of the Verso estate, SSG marketed the business units through four separate sale processes. After conducting a broad sale process and negotiating with several strategic and financial buyers, a bid by Communications Test Design, Inc. for the Access Device Business was deemed to be the highest and best offer. The sale of the Access Device Business closed on July 16, 2008. After a 363 auction that included 68 bids and a purchase price that was ultimately more than double the stalking horse bid, the Mobile Backhaul Business was sold to Comtech Telecommunications Corp. The sale of the Mobile Backhaul Business closed on July 18, 2008. The sale of the Network Monitoring and Security Business closed on October 28, 2008.

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