21st Nov 2018 10:13
LONDON (Alliance News) - Ubisense Group PLC said Wednesday it inked a deal for the sale of its RTLS SmartSpace business unit for up to GBP35 million, to a firm controlled by Investcorp Technology Partners managed funds.
Ubisense shares jumped 17% to 70.80 pence each following the news.
The provider of location intelligence solutions said that the sale will include the Ubisense brand. After completion, it will change its name to IQGeo.
The first GBP30 million will be paid in cash on completion of the sale, with further GBP2 million in a rollover investment into the sold business and an additional GBP3 million earn-out tied to revenue performance in 2018 and 2019.
Following the sale, the company said it intends to return the excess cash to shareholders.
The company will now call a general meeting during which shareholders will vote to approve the sale, expected to be completed in December.