SDL agrees to sell Social Intelligence business

SDL said on Thursday that it has agreed to sell its Social Intelligence business.

The business consists of two subsidiaries - Social Intelligence, Inc and SDL Technologies (Vietnam) Co Ltd - and will be sold to Social Data Intelligence LLL, with completion expected on 2 May.

Back in January last year, SDL announced its strategic decision to divest certain non-core elements of its technology business, being Campaigns, Fredhopper and Social Intelligence.

The Campaigns business was sold on 2 November 2016 and the Fredhopper business was sold on 8 March 2017.

SDL has signed a sale and purchase agreement with SDIL for the sale and there is an immediate cash consideration for the disposal of £1. As part of the transaction, SDL has agreed to subscribe for a $1m unsecured 2027 loan note issued by SDIL.

The gross assets of the business being disposed amount to around £400,000 and the deal is expected to lead to a loss on disposal of approximately £500,000, which will be accounted for within discontinued activities.

The Social Intelligence Business made a pre-tax loss of £3.8m in 2016, which was reported as a discontinued activity in the group's annual report.

Chief executive officer Adolfo Hernandez said: "We are delighted to have found a home for stakeholders of the Social Intelligence Business, including employees and customers. The transaction concludes the sale of the group's non-core businesses."

At 1047 BST, the shares were up 0.4% to 567.50p.