3rd May 2016 07:52
LONDON (Alliance News) - Recruitment software company Bond International Software PLC on Tuesday said it has sold its subsidiary Strictly Education Ltd for GBP11.3 million to Education Services Solutions Ltd.
Education Services Solutions is a newly formed company, having first been incorporated on April 8, with a UK based private investment fund to own the majority interest in Strictly Education and management to own a minority interest.
Strictly Education provides outsourced payroll, human resources, information technology, property and other services to state schools in England. The subsidiary generated revenue of GBP10.2 million in the year ended December 31, 2014, Bond International said, and pretax profit of GBP1.8 million.
Bond International said it will receive an initial payment of GBP7.0 million in cash and an unsecured loan note for GBP4.3 million issued by Education Services Solutions for the sale. This loan note is repayable no later than six months from Tuesday, Bond International added, noting that the loan is interest free for three months, following which interest is payable at 5.0% per annum.
Bond International said it intends to sell one or more of its operating divisions so as to maximise value for shareholders, and to return net cash from these sales to shareholders.
"Following the conclusion of the strategic review [in February], I am pleased that we have been able to conclude the first of our disposals designed to maximise shareholder value," said Chief Executive Steve Russell.
Shares in Bond International were up 2.3% at 90.00 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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