Last checked at 3 Jul 2018 07:00
www.microgen.com 3 July 2018
DISPOSAL OF PAYMENTS BUSINESS
Microgen plc ('Microgen' or the 'Group') announces the disposal of its payments business, a small, non-core component of the Microgen Financial Systems division to CJJ Investments Limited, a wholly-owned subsidiary of a large US technology group, for cash consideration of £6.9 million. The payments business provides a series of BACS payment products and supporting services to a wide range of businesses in the UK generating revenue in 2017 of £1.4 million and an operating profit of £1.0 million.
The disposal of the non-core payments business will enable Microgen Financial Systems to concentrate its resources on its Trust & Fund Administration business ('T&FA'), the strategic focus of the business. Adjusting for the disposal of the payments business, T&FA represented 67% of Microgen Financial Systems' revenue in 2017.
The Group will retain the proceeds from the transaction to support Microgen Financial Systems' acquisition strategy with potential acquisitions continuing to be actively evaluated within T&FA and adjacent sectors where there is the potential to leverage Microgen Financial Systems' existing technology.
The disposal will be effected by the sale of shares in the Group's subsidiary company, Microgen Banking Systems Limited, with no corporation tax payable on the proceeds. The gross assets of Microgen Banking Systems Limited at disposal are approximately £2.3 million of which £1.7 million represents goodwill.
Contacts
Philip Wood, Chief Financial Officer 020-7496-8100
James Melville-Ross / Darius Alexander 020-3727-1000
FTI Consulting