IRISH TECHNOLOGY company Trintech is to dispose of its healthcare division Concuity for $34.5 million (€25.3 million) in cash.
The firm, which yesterday announced full-year revenues of $32.5 million (€23.8 million), said it has signed a definitive agreement for the sale of its healthcare division, Concuity, to the Nasdaq-listed Advisory Board Company.
Under the terms of the agreement, the Advisory Board Company will pay Trintech $34.5 million cash for all of the outstanding shares of a newly formed Trintech subsidiary which, before closing, will hold the majority of the assets and liabilities of the Concuity business.
The purchase price is subject to a working capital adjustment at the closing date. An escrow amount of $6 million to be set aside with $2 million being released after nine months and the remainder no later than December 31st, 2011.
The sale has been approved by the boards of directors of both firms and is expected to be completed within one month.
Announcing its fourth quarter and full-year results yesterday, Trintech recorded fourth-quarter revenues of $7.9 million, unchanged from a year earlier. Net income at the earnings before interest, tax, depreciation and amortisation point (Ebitda) totalled $1.4 million while for the final three months of the year, it was $910,000.
This compares with an adjusted Ebitda net income from continuing operations of $649,000 for the same quarter a year earlier.
For the year as a whole, the company posted revenues of $32.5 million, down 5 per cent from the €34.3 million recorded a year earlier. Full-year adjusted Ebitda net income came in at $4.9 million and net income at $2.6 million.
Trintech generated $2.6 million cash for the 2010 fiscal year and increased its cash balances to $20.1 million.
“Following the Concuity sale, we will have a strengthened balance sheet of over $50 million cash and will target growth in our core . . . business,” said Trintech chairman and chief executive Cyril McGuire.
“Our outlook for the fiscal year 2011 is for robust growth of 10 per cent in revenues and continued earnings growth as the global economy recovers with encouraging signs of market confidence and stability building in the US and internationally in our target markets,” he added.
