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7digital Group PLC - 7digital agrees sale of Denmark assets to TDC

Thu, 2nd May 2019 16:04

RNS Number : 9408X
7digital Group PLC
02 May 2019
 

2 May 2019

7digital Group plc

("7digital" or "the Company")

 

 

7digital agrees sale of Denmark assets to TDC

 

7digital (AIM:7DIG), the global leader in B2B end-to-end digital music solutions, announces the sale of select technology from the Company and its Denmark subsidiary ("7digital ApS") and transfer of staff to TDC Group/ TDC A/S ("TDC") (the "Transaction"). TDC Group is the largest telecommunications company in Denmark.

 

The Board believe this Transaction will be mutually beneficial to both 7digital and TDC. The Transaction passes control of the Company's bespoke technology, and the resources to maintain it, to TDC. This technology was used by only one customer and had become unprofitable for the Company to maintain. The annual losses to be eliminated from the business total around £1.6m at the current run rate and the net value of the assets being sold was approximately £0.9m as at December 2018. This transaction means that 7digital can now focus its resources on its productised, cloud-hosted technology which is already used by many customers globally.

 

The consideration for the Transaction is €1.375m in cash, of which €1.0m was paid to 7digital at completion. The remainder of the cash consideration will be retained by TDC to cover certain potential liabilities and released by TDC to the Company by no later than 31 January 2020 to the extent that it is not required to meet such liabilities. The consideration is subject to customary post-closing adjustments. The cash will be used for general working capital.

 

John Aalbers, CEO of 7digital, commented:

"We're pleased that TDC, a valued client of more than a decade, will continue to benefit from the assets (both technology and staff) that this deal covers. The sale of bespoke technology is part of 7digital's renewed focus on providing standardised products that can be implemented quickly for a variety of customers."

 

For further information please contact:

 

7digital

020 7099 7777

 

John Aalbers, Chief Executive Officer

 

Julia Hubbard, Chief Financial Officer

Holly Ashmore, PR Manager

 

 

Arden Partners (nominated adviser and broker)

 

020 7614 5900

 

Ruari McGirr/ Tom Price/ Benjamin Cryer - Corporate Finance

 

Yellow Jersey PR

Georgia Colkin   

Charles Goodwin        

7digital@yellowjerseypr.com

 

 

 

 

 

 

07825 916 715

07747 788 221

 

 

About 7digital (http://about.7digital.com/)

 

7digital is the global leader in B2B end-to-end digital music solutions. The core of its business is the provision of robust and scalable technical infrastructure and extensive global music rights used to create music streaming and radio services for a diverse range of customers - including consumer brands, mobile carriers, broadcasters, automotive systems, record labels and retailers. 7digital also offers radio production and music curation services, editorial strategy and content management expertise.

 

7digital fosters industry growth and innovation by simplifying access to music for clients such as Onkyo and TikTok (formerly musical.ly). From years of being the largest independent producer of programming for the BBC and powering services for partners like Panasonic and Fender, 7digital is perfectly positioned to lead innovation at the intersection of digital music and next-generation radio services.

 

About TDC

 

TDC Group connects Denmark, and has a clear ambition to facilitate and improve customer access to digital services and content. The company is Denmark's preferred provider of communication and entertainment services in the home and on the move. YouSee, Telmore, Fullrate, Hiper and Blockbuster provide its Danish customers with quick and easy access to a wide range of music, film and TV on all platforms, anytime and anywhere. TDC Business is creating tomorrow's growth in both large and small Danish enterprises through providing simple, digital solutions.  

 

 

 

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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