LONDON (Alliance News) - Bond International Software PLC said on Friday it has entered into a conditional agreement with a company owned by Tenzing Private Equity for the sale of its payroll subsidiaries.
The subsidiaries comprise of Bond HR & Payroll Software, Bond Payroll Services and Eurowage Ltd. The net cash consideration for the sale is GBP27.4 million and the assumption of a GBP2 million net debt owed by Eurowage.
During 2015, Bond Payroll Services and Bond HR & Payroll Software had a combined revenue of GBP7.1 million and a pretax profit of GBP2.0 million. Eurowage, trading as FMP Europe, had revenues of GBP4.9 million and made a pretax profit of GBP1.7 million in 2015.
Tenzing Private Equity will buy the businesses through a private company, FMP Global Bidco, in which it is a majority shareholder. Justin Cottrell and other senior management of the payroll subsidiaries are minority shareholders in FMP Global Bidco.
The sale is in line with the Bond International's divestment strategy, announced in February 2016. The sale is conditional to shareholder approval in a general meeting, but the company said the sale should create "maximum value" for its shareholders.
The sale of the payroll subsidiaries follows the sale announced on May 3 of Bond International's subsidiary, Strictly Education Ltd to Education Services Solutions Ltd, for a total consideration of GBP11.3 million.
"The board is pleased to announce the sale of its payroll subsidiaries as we believe this will generate maximum value for shareholders. The proposal by the purchaser, which was received as part of a competitive process in which multiple offers were submitted, represents an attractive valuation for the businesses and recognises its market position and future prospects," said Martin Baldwin, chairman of Bond International.
Shares in Bond International were up 11.2% on Friday at 113.99 pence.
By Lucy Heming; lucyheming@alliancenews.com
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