(Alliance News) - Cello Health PLC will pay back GBP1.6 million to Access Intelligence PLC amid a shortfall in net assets at Pulsar, the companies said on Thursday.
In October, Cello Health sold its social media analytics software business Pulsar to Access Intelligence PLC for GBP4.5 million in Access stock, around 8.7 million shares.
However, the healthcare-focused advisory group Cello said that it has now reached an agreement with Access Intelligence to pay back GBP1.6million for a net assets shortfall below the agreed target level of net current assets at closing.
In order to pay the GBP1.6 million, Cello will sell 4.1 million Access shares back to Access for GBP1.
Cello will said it will retain 4.1 million shares in Access Intelligence following the settlement, adding that these adjustments will result in an increased loss in its results for 2019, which will be published on March 18.
For 2018, Cello posted pretax profit of GBP8.4 million on revenue of GBP165.6 million.
Access Intelligence Chief Executive John Arnold said: "Due to Cello Health's proactive engagement, we are pleased to have reached a swift and satisfactory resolution. The rationale for the acquisition remains unchanged, and we look forward to growing the business as part of the Access Intelligence portfolio."
Cello Health was trading 1.9% lower at 138.75 pence each on Thursday afternoon in London. Access Intelligence was flat at 50.50p.
By Ife Taiwo; ifetaiwo@alliancenews.com
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