(Sharecast News) - Conveyancing platform company ULS Technology has sold its wholly-owned subsidiaries Conveyancing Alliance Holdings and Conveyancing Alliance Limited (CAL) for £27.3m in cash, it announced on Monday, to Project Ophelia Bidco.
The AIM-traded firm said Project Ophelia Bidco is a company which also controls O'Neill Patient Solicitors, which is the largest conveyancer on the CAL panel.
It said CAL made £2.5m EBITDA in the year ended 31 March.
Proceeds from the disposal will be used to repay all of the group's existing debt facilities, leaving around £25m of pro forma cash on its balance sheet.
The group's main operating brand post disposal, eConveyancer, delivered around £5m of EBITDA in the year ended 31 March.
Following the sale of CAL, and taking into account the current level of investment in Digital Move, ULS Technology said it remained profitable at the EBITDA level.
"This is a pivotal moment for ULS with the disposal enabling us to accelerate our growth strategy," said chairman Martin Rowland.
"We believe that the consideration represents an attractive valuation, unlocking value for shareholders, whilst at the same time providing the capital to achieve our vision of building a digital platform that will transform the entire home moving and home owning process for consumers."
At 0952 GMT, shares in ULS Technology were up 18.09% at 71.8p.
20 Oct 2014 06:56