(Sharecast News) - Cloud telephony specialist LoopUp announced its intention to exit its Hybridium business globally on Monday by initiating proceedings to place the associated group subsidiary Mashmegroup into the Spanish 'Concurso' administration process.
The AIM-traded firm acquired SyncRTC, the parent of Mashmegroup, in October 2021, which led to the rebranding of its large-scale hybrid events technology as Hybridium, aligning with its shift from the education to the corporate market.
It said the decision to exit Hybridium resulted from a comprehensive review of the Hybridium go-to-market strategy and a broader group-wide prioritisation assessment.
LoopUp's board determined that the company's financial and operational resources should be concentrated on its rapidly growing cloud telephony business without being constrained by the earlier-stage Hybridium venture.
Over the last 12 months, cloud telephony showed impressive triple-digit growth in customers, contracts, booked annual recurring revenue (ARR), and revenue, justifying its prioritisation for maximising shareholder value creation.
Exiting Hybridium was expected to yield two significant benefits for LoopUp, the board said, with the first being a projected saving of €1m in cash costs over the next 12 months.
Secondly, it said it would eliminate around €1m of debt from its balance sheet.
LoopUp Group was optimistic about meeting current market expectations for the full year based on its year-to-date trading performance.
"While we still believe in the value potential of the Hybridium technology, we have made a broader group wide strategic decision to exit Hybridium and focus on maximising the value of our fast-growing multinational cloud telephony business," said co-chief executive officers Steve Flavell and Michael Hughes.
"We would like to thank the Hybridium team for their tremendous work and commitment to an exciting and cutting-edge technology."
Reporting by Josh White for Sharecast.com.
