K3 Business Technology proposes sale of NexSys Solutions arm
K3 Business Technology Group
87.50p
11:00 02/12/24
K3 Business Technology has proposed the sale of its NexSys Solutions unit to Advent-backed software firm SYSPRO for £36.0m.
Software & Computer Services
2,711.06
13:29 02/12/24
The proposed cash deal would value NexSys at a considerable 28.8% premium to K3's pre-announcement market capitalisation of 28.0m.
K3 expects to receive net proceeds of £34.4m from the sale, the bulk of which will be returned to shareholders in H125, while the remainder will be used to fund working capital and restructuring costs.
The AIM-listed group added that following completion of the disposal, it expects the remaining group to become month-on-month cash break even, after full allocation of central overhead, during Q125.
As of 1105 GMT, K3 shares had surged 36.96% to 85.60p.
Reporting by Iain Gilbert at Sharecast.com