29th May 2014 13:51
LONDON (Alliance News) - Anite PLC Thursday said that it has sold its travel business through the divestment of Anite Travel Ltd to private equity house LDC and Anite Travel's management for GBP45.0 million in cash.
Earlier this month, Anite said that its Network Testing and Travel business continued to perform well, meeting expectations, although it was still continuing to investigate the potential disposal of its Anite Travel business.
The hardware and software company said Thursday that by selling its travel business, it can focus on investing and developing its Wireless division.
Under the deal, LDC will acquire the entire share capital of Anite Travel, on a cash free debt free basis for GBP45.0 million. It said it is subject to adjustments for working capital, with GBP1.7 million of the considerations to be held in an escrow account subject to the satisfactory resolution of certain commercial considerations.
LDC is a UK mid-market private equity specialist.
Anite said it will realise around a GBP30 million profit on the disposal in the financial year ended April 30, 2015.
The company said it plans to use the net proceeds from the sale to pay down existing debt and to fund future investments in its Wireless business.
"The board believes that the disposal price is a fair reflection of the value of Travel - taking into account its prospects and market position. The timing of the disposal is right in terms of the next stage of Travel's long-term development," the company said in a statement.
Anite shares were up 3.8% Thursday afternoon, at 96.25 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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