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LONDON (Alliance News) - Transense Technologies PLC said Wednesday it has agreed to sell its loss-making IntelliSAW division to US manufacturer Emerson Electric Co for USD5 million.
Transense also will get a one-off licence fee for the exclusive use for intellectual property related to the IntelliSAW business. The total sum payable to Transense net of all costs in sterling will be GBP2.9 million, it said.
Shares in Transense were up 22% at 1.40 pence Wednesday morning, one of the best performers on AIM.
Transense said it believes the sale, along with proceeds of a recent share placing, will put it in a strong cash position to speed up commercial developments in its remaining divisions: Translogik and SAWSense.
The business, excluding IntelliSAW, achieved positive earnings before interest, tax, depreciation and amortisation in the year to end-June, and as its overheads reduce and sales increases, it is moving "significantly closer to breakeven", Transense said.
IntelliSAW reported a net loss in the year to end-June of GBP1.0 million.
"The sale of the IntelliSAW division, to a company of the standing of Emerson, is another demonstration of the commercial value of our technology. This provides Emerson with a unique opportunity to strengthen and grow this business. I am grateful to the employees of IntelliSAW for their commitment to growth and operational excellence throughout our partnership. We now have a considerably strengthened balance sheet, and believe that the group is well positioned to become a self-sustaining, high-growth and cash-generative business," said Chief Executive Officer Graham Storey in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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