Verso Technologies Inc. has bought AccessGate from NMS Communications Corp., a provider of applications and platforms for mobile telecommunications networks, to boost its cellular backhaul business.

Per the agreement, network solutions company Verso acquired AccessGate business and associated assets and liabilities for a total $3.35 million, including $850,000 in cash and $2.5 million in Verso common stock.

"The acquisition of AccessGate roughly doubles the size of Verso's cellular backhaul optimization business, which has strong positive implications for gross margin and profitability of that business unit and, therefore, the overall financial performance of Verso," said Steven A. Odom, chairman/CEO of Verso, in a statement.

Verso intends to integrate the AccessGate division with its NetPerformer optimization product line to create a combined cellular backhaul optimization business focused on the growing worldwide cellular backhaul market.

"In addition to the cost savings related to the integration of these two businesses, we gain new sales channels through which we can cross-sell additional Verso products and we acquire members of a very capable and knowledgeable management team who will remain with the company and take over responsibility for all of Verso's backhaul optimization business," Mr. Odom said in the statement.

NMS said that AccessGate will be treated as a discontinued operation and will not be included in revenues and operating income results from continuing operations, both currently and retrospectively.

AccessGate reported third-quarter revenues of approximately $2 million. The AccessGate business operated at approximately breakeven on a non-GAAP basis.

Bob Schechter, NMS Communications chairman/CEO, said the sale will enable NMS to focus on its two strategic business units: the communications platforms business and the recently launched LiveWire Mobile business.

"We significantly sharpened our focus on these two business areas with the re-organization of the company earlier this year into two fully integrated businesses, and the sale of the AccessGate business is another step forward on this path," Mr. Schechter said in the statement.