High Wire sells staffing business for $11.5 million

BATAVIA - High Wire Networks Inc., a global provider of managed cybersecurity and technology enablement services, has sold its staffing business in a $11.5 million transaction comprised primarily of the elimination of debt.

The deal also involves the cancellation of certain shares of its Series D preferred equity stock, the company said.

The transaction eliminates approximately $325,000 in monthly debt payments - or $3.9 million on an annualized basis. This frees up substantial capital that High Wire said it will use to support its faster growing, higher margin, managed cybersecurity and technology business that is generating recurring revenue from long-term contracts.

The transaction also reduces High Wire's fully diluted common shares by more than 16% through the elimination of conversion provisions associated with the debt and 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 company CEO Mark Porter. "Moreover, its divestiture allows us to focus our attention and financial resources on our core cybersecurity and technology enablement business. These areas have been generating our strongest growth and providing the most attractive market opportunities with our unique channel partner program."