Transense Technology surges after selling loss-making division

Shares in Transense Technologies surged over 25% on Wednesday, after the technical research provider revealed it has agreed to sell its loss-making IntelliSAW division.

The London-listed company has reached a deal with US-based manufacturer Emerson Electric, which will see it receive $5m as well as a one-off licence fee for the exclusive use for intellectual property related to the business.

The group said the sale of the business, which posted a 31m loss in the year to the end of June, will improve its cash position, as it aims to ramp up commercial developments in its two other segments.

"The sale of the IntelliSAW division, to a company of the standing of Emerson, is another demonstration of the commercial value of our technology,” said group chief executive Graham Storey.

“This provides Emerson with a unique opportunity to strengthen and grow this business.”

Transense shares were up 18.26% to 1.36p at 1219 BST on Wednesday.