Tangoe Delisted from NASDAQ
AOTMP’s Colwell Advises Clients to ‘Keep Tabs on This Development’
As expected, Tangoe has been delisted from the NASDAQ exchange and moved over to the Pink Sheets over-the-counter market.
The TEM provider had been telling the Securities and Exchange Commission it would not be able to meet reporting mandates by March 10, and that indeed was the case. The move comes as Tangoe continues to evaluate takeover offers from three entities: Marlin Management Company LLC, and a joint proposal from Clearlake Capital Group and Vector Capital Management.
AOTMP, which has provided guidance and other services to Tangoe, has recommended the board turn down both proposals.
“While we have a very limited view and certainly aren’t aware of all the circumstances, we do not believe the transaction would be good, first, for the enterprise buyers; and second, we believe there is significant opportunity for growth in revenues and shareholder value that can be capitalized on,” AOTMP CEO Tim Lybrook wrote in a January email to Tangoe. “You are just getting started with your turnaround plan and with proper execution we believe Tangoe can bring significantly more value to the current shareholders over the next 24 months.”
Tangoe had yet to make a decision by press time. Meanwhile, it started trading on the Pink Sheets exchange, where stocks lack liquidity, tend to be volatile and companies no longer need to file with the SEC.
Still, Tangoe is working to complete its financial restatements so it can return to the NASDAQ. But even as it does so, and even as the board evaluates options, “the ultimate direction of the company is uncertain,” said Timothy C. Colwell, senior vice president at AOTMP.
“Customers should keep tabs on this development as a change in strategic direction, leadership and ownership could affect business relationships by disrupting current Tangoe initiatives for improving customer experience, innovating and evolving solutions, and increasing delivery performance,” Colwell said.
To be fair, Tangoe is not alone in grappling with execution and scalability challenges. The whole telecom/IT/mobility management sector is seeking a model for success. The Cass-Efftel deal, for its part, highlights that overcoming these issues is possible when done in a thoughtful, inorganic way with a company that brings little overlap and new expertise to the table.
— Kelly Teal, Editor-in-Chief, AOTMP Telecom Management Industry Update