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3 Sep 2008 09:02
For immediate release 3 September 2008
Gresham Computing plc
("Gresham" or "the Company")
Disposal of Redstone Software Inc.
Gresham Computing plc today announces the disposal of its subsidiary Redstone Software Inc ("Redstone"), the testing and automation business.
"I am pleased to announce the disposal of our interest in Redstone, whose employees and customers will benefit from being owned by a company that is dedicated to the testing and automation market. Our attention will be all the more keenly focused on core business. This deal makes good sense for all parties concerned." commented Andrew Walton-Green, Gresham's CEO.
On 2 September 2008, Gresham signed and completed an agreement to effect the disposal of Redstone, a company in which Gresham holds a 91% equity share interest (the "Transaction"). Together with the payment of a nominal sum for Redstone shares, the purchaser settled the inter-company debt owed by Redstone to the Company to the value of approximately £500,000 payable as to £475,000 in cash on completion and £25,000 a short period of time thereafter. In addition, the Company will receive a small share of post disposal sales completed during the period from completion to 31 December 2008, not expected to exceed a nominal amount.
The new owner is Testplant Limited ("Testplant"), a UK registered company developing software testing solutions formed by serial entrepreneur George Mackintosh and backed by Seraphim Capital.
George Mackintosh, CEO Testplant, commented
"We are very excited about the opportunities to develop sales of Eggplant far beyond its traditional US borders. The existing base of Fortune 500 customers provides a tremendously credible springboard for us into European and Asian markets. Our testing products deliver more reliable software systems quicker and at less cost to the developer."
- Ends -
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