MOSCOW: Aptitude Software Group, a leading provider of business-critical software and services, has entered into an agreement to sell the entire issued share capital of its wholly-owned subsidiary, Microgen Financial Systems Limited (MFS), to Moscow Bidco Limited for for an aggregate cash consideration of £51.0 million.[the_ad id=”31605″]Bidco Limited is a newly incorporated private limited company controlled by funds advised by Silverfleet Capital Partners LLP.
The disposal is a major milestone in the Aptitude Software Group’s long term strategy of creating two independent software businesses which benefit from recurring revenues, and represents the start of a new era which sees the Aptitude Software business become the total focus of the Group.
On 25 March 2019, Aptitude announced that it had concluded that a demerger of MFS on to AIM would enhance the Group’s ability to allocate capital and management attention on the higher growth Aptitude business, whilst also providing MFS with the ownership environment for it to successfully pursue its own independent growth strategy focusing on its specialist target market and servicing its international customer base.
The Board of Aptitude believes that the aggregate cash consideration of £51.0 million represents a fair value for the business, which recognises MFS’ market position, track record of organic growth and positive cash characteristics.
Assuming Completion on 30 June 2019, the net cash proceeds arising from the disposal are expected to be approximately £48.4 million.
Commenting on the Disposal, Ivan Martin, Chairman of Aptitude, said: “I am pleased to announce today the sale of Microgen Financial Systems. The Disposal represents a significant milestone in the strategic development of the Group and, as was the case with the previously announced proposed demerger, the Board strongly believes that the Disposal enhances the long-term prospects of both businesses and will benefit clients and employees.
“In line with my comments on 25 March 2019, we believe that the Disposal will simplify the Group, allowing the higher growth Aptitude Software business with its specialised financial management software applications to be the sole focus going forwards whilst Microgen Financial Systems looks forward positively to its future as a focused independent software business based on its leading product, Microgen 5Series.
“The Disposal process provides certainty over the crystallisation of the value of MFS for Aptitude shareholders, without the longer timeframe and risk associated with a demerger process and we will evaluate, in consultation with our shareholders, how best to deploy the net proceeds of the Disposal for the benefit of shareholders over the coming months.”