14th Jan 2019 11:22
LONDON (Alliance News) - Gresham Technologies PLC on Monday said it has agreed to sell its virtual machine environment mainframe software business for GBP2 million to Fujitsu Services Ltd.
The software and services company said many of its customers have discontinued their use of VME software tools, with a residual base of 13 customers now remaining. As a consequence, Gresham's VME revenue has been steadily declining.
For 2017, the revenue and profit attributable to the VME business was GBP870,000 and GBP700,000, respectively.
Under the terms of the agreement, Gresham's VME customer contracts and the intellectual property rights in the relevant software products will be transferred to Fujitsu with effect as of January 31.
"This sale continues the business transformation process initiated several years ago towards establishing Gresham as a global financial technology business, and also reflects the board's confidence in our longer-term Clareti-led growth strategy" explained Chief Executive Ian Manocha.
Clareti is Gresham's data management software.
"Fujitsu is ideally placed to assist customers wishing to migrate to their next generation service and provide good continuity of operational software support and maintenance," added Manocha.
Gresham Technologies shares were trading 1.1% lower on Monday at 93.00 pence each.
Related Shares:
GHT.L