Disposal of Campaigns business
SDL announces the sale of its Campaigns business
11/3/2016 9:08:58 AM
3 November 2016, Maidenhead, U.K. - SDL plc (“SDL”, “Group” or the “Company”), a leader in global content management and language translation software and services, today announces the sale of its Campaigns business to Alterian Holdings LLC and its subsidiary undertakings, an acquisition vehicle owned by affiliates of Allomer Capital Group LLC.
In January 2016, SDL announced its strategic decision to divest certain non-core elements of the Group’s technology business. These businesses are SDL Fredhopper, Social Intelligence and Campaigns.
The Campaigns business, designs and develops software products to manage, optimise and deliver consistent and engaging marketing campaigns across multiple digital and offline channels. This business, represented by certain assets of SDL plc and its subsidiary undertakings including the Alterian trade name, has been sold to Alterian Holdings LLC and its subsidiary undertakings for £2.4m before purchase price adjustments.
The majority of the Campaigns business is contracted under Software as a Service arrangements over multiple years. As a consequence, the net cash impact of the disposal is expected to be negative and in the order of £1.3m. The gross assets of the business being disposed, including goodwill and intangibles, amounts to £23.8m and this is expected to lead to a loss on disposal of £20.1m. The Campaigns business made a loss before taxation in 2015, after impairment write-downs, of £18.8m and the financial contribution of the Campaigns business in 2016 has been reported as a discontinued activity in the Group’s financial reports in the current year.
The Fredhopper and Social Intelligence sales processes continues as previously announced and the expected profit on these disposals is expected to largely offset the loss on disposal of the Campaigns business.
Adolfo Hernandez, CEO of SDL, commented:“We are pleased to have completed the first of our non-core business disposals and to have found the customers and employees of the Campaigns business a good home. As two separate businesses, we can each focus on being the very best at our core competencies and provide our customers with the best possible solutions going forward.”