2nd Nov 2018 08:41
LONDON (Alliance News) - Defence and energy firm Ultra Electronics Holdings PLC said Friday it had sold its non-core airport software systems unit to ADB Safegate for GBP22 million.
"Although Airport Systems has been a part of Ultra for some time, it has little customer, process or technology commonality with the rest of the group," Ultra Chief Executive Officer Simon Pryce said.
"As part of our focus on long term sustainable value creation and after conducting an appropriate process, we have therefore concluded that a sale of Airport Systems to ADB Safegate is the best long term solution for Airport Systems customers, employees and other stakeholders and represents good value for Ultra", Pryce added.
The airport systems business - which provides software to improve operational performance at airports - will see ADB pay an initial GBP20.0 million. A further GBP2.0 million will be paid following the transfer of come commercial contracts.
FTSE 250-listed Ultra expects the sale to close by the end of January 2019.
In 2017, the airport systems unit generated a GBP3.2 million operating profit on revenue of GBP18.9 million revenue.
In total, 2017 saw Ultra report GBP61.5 million operating profit on GBP775.4 million revenue. Pretax profit stood at GBP60.6 million.
The sale is expected to be "marginally" dilutive to earnings in 2019. The disposal will also result in a GBP8.0 million charge either due to a goodwill write down or loss on disposal cost, depending on when the deal closes.
Shares in Ultra were 1.3% higher at 1,451.00 pence on Friday.
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