Prophecy International Holdings Ltd (ASX: PRO) is pleased to announce that it has signed an agreement to sell its basis2 Utilities Billing System. basis2 forms a part of the Legacy business unit at Prophecy.
The business has been sold for a consideration of AUD$2.75 million in cash and the agreement is subject to the buyer raising part of the cash settlement amount through a share placement. Final settlement of the transaction is due by the end of May 2017 when the full consideration will be paid in cash and the staff and business assets transferred to the new owner.
Brad Thomas, Prophecy Group CEO said “This is a significant day for Prophecy and marks a transition away from our old lines of business to a renewed focus on growth in our new businesses. We are now fully focused on the Security and Log Management market with Snare and in the Analytics and Business Value Dashboard market with eMite. This sale not only further solidifies the cash position of the company but enables us to invest in a number of growth initiatives to better reach our global markets and support our customers and partners around the world.”
The basis2 business is built around a solid core of Oracle technology and has a global customer base, however it is not a focus of future growth for Prophecy.
Prophecy is pleased that the buyer has seen the value in the technology and the customers and will give the existing customer base the support that they require.
Prophecy was advised by global utility/water/telecommunications enterprise software M&A advisors, Presser & Co, www.presserco.com.au
Prophecy is also pleased to record that the supplier dispute noted in our previous ASX announcement of 13 February 2017 has now been amicably resolved.