16th Oct 2014 07:57
LONDON (Alliance News) - OMG PLC said Friday it has completed the sale of its California-based subsidiary House of Moves Inc for GBP800,000 to the subsidiary's management.
House of Moves is a service-based motion-capture and animation business.
OMG will receive GBP800,000 in cash, of which GBP300,000 is due on completion. The balance in deferred consideration will be spread in equal instalments over the next four years. The sale will generate a non-cash loss of around GBP700,000, which will be included in OMG's full year results, it said.
The company undertook a strategic review of the business in the first half, and decided that it no longer fit with its overall strategic direction as a software and hardware technology business. In the year to end-September 2013, the subsidiary posted a pretax loss of GBP700,000, on revenue of GBP2.0 million.
"This move is a step in the right direction as the board continues to explore a range of opportunities to realise value in OMG's IP, which may involve the licensing of certain technologies where external companies see value in deploying our IP to pursue their own business goals or, as in the case of House of Moves, the sale of certain assets, where we believe that greater shareholder value can be realised in the near term," said Chief Executive Nick Bolton in a statement.
Shares in OMG are untraded Thursday at 27.00 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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