BBN finalizes agreement to divest majority interest in BBN Domain.CAMBRIDGE, Mass.--(BUSINESS WIRE)--August 1, 1996--BBN Corporation (NYSE NYSE See: New York Stock Exchange :BBN (BBN Technologies, Cambridge, MA, www.bbn.com) A consulting firm that participated in the development of some of the most extensive networks in the world, including ARPANET, which evolved into the Internet. It was founded in 1948 as a consulting service in acoustics by Dr. ) today announced that it has finalized the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of a majority interest in its BBN Domain Corporation subsidiary, completing the transaction announced on July 2. BBN Domain has been renamed Domain Solutions Corporation. Under terms of the agreement, Domain has been recapitalized, a significant portion of BBN's interest has been redeemed, and a majority of the stock interest in Domain has been purchased by an investment group led by ABS Capital Partners. BBN has received a cash payment of $36 million and will retain a minority interest of approximately 15% of the voting stock Voting stock The shares in a corporation that entitle the shareholder to vote. voting stock Stock for which the holder has the right to vote in the election of directors, in the appointment of auditors, or in other matters brought up at the . The proceeds, added to BBN's existing cash and short-term investments, give the company a high level of liquidity that enables continued expansion of the company's network infrastructure, the expansion of distribution channels, and the development of value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. . BBN is a leading provider of Internet services and internetworking solutions to businesses and organizations. For more information, visit BBN's web site at http://www.bbn.com. CONTACT: Peter W. Thonis (617) 873-3512 Fax: (617) 873-5011 Internet: pthonis@bbn.com |
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