DXN’s $20M Edge Manufacturing Sales Decline. | So Good News
DXN is in early talks with other interested parties for its data center business, although the $20 million sale of its edge module manufacturing business unit to Flow2Edge Australia has fallen through.
In September The pre-fabricated modular data center specialist announced that it will sell all of its assets to FLOW for $20 million after amending a previous agreement to sell all of its assets for $26 million in August.
The September fix will leave DXN’s data center business behind.
now, DXN came out in a statement to the Australian Securities Exchange (ASX) to say it “cannot satisfy” the terms of the sale to FLOW.
“Therefore, the announced transaction will no longer proceed in its current form and the sale agreement will be terminated,” the statement said.
However, DXN is also said to be considering alternative strategic options for the edge business unit, which includes an unspecified partnership with FLOW that includes a licensing and distribution arrangement.
These discussions are in their early stages; “It is not certain that they will come to a definitive agreement,” the specialist added.
In addition, DXN is preparing to sell its data center business, saying it has received expressions of no interest in acquiring the unit. However, these discussions are at an early stage.
DXN’s desire to sell parts of its business follows a separate announcement in August that its directors intend to restructure the company.
The specialist’s continued buying efforts also come after DXN released its results for the 2021-22 financial year in September and revealed a loss of $6.9 million, which DXN blamed on the COVID-19 pandemic and subsequent supply chain chaos.
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