Axeda sheds DRM business, sells to private equity firm for $7 million

Mansfield's Axeda Systems Inc. has entered into an agreement to sell its device relationship management business and its assets to a new corporation for $7 million, plus the assumption of certain liabilities.

Axeda said a private equity firm focused on software and business services, JMI Equity Fund V LP of San Diego and Baltimore, would form and own the corporation to run the DRM business. The deal is expected to close next month and is subject to certain conditions and shareholder approval.

Axeda's board approved the deal and has recommended that shareholders do likewise. JMI would provide $1.5 million in bridge loans to Axeda, with $900,000 being advanced now.

The sale does not involve Axeda's industrial-automation product line that the company markets under the 'Supervisor' name under its Axeda Systems SAS subsidiary.

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