Business
Altisource Announces Definitive Agreement to Sell Pointillist Subsidiary
Altisource to Receive an Estimated $104 Million in Cash and Recognize an Estimated $107 Million Post-Tax Gain From the Transaction LUXEMBOURG, Oct. 07, 2021
About this update from Altisource Portfolio Solutions S.a.
[{"type":"text","content":"Altisource to Receive an Estimated $104 Million in Cash and Recognize an Estimated $107 Million Post-Tax Gain From the Transaction\nLUXEMBOURG, Oct. 07, 2021 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”) (NASDAQ: ASPS) today announced that the shareholders of Pointillist, Inc. (“Pointillist”), a majority owned subsidiary of Altisource, entered into a definitive agreement to sell all of the equity interests in Pointillist to Genesys Cloud Services, Inc. (“Genesys”) for $150 million (the “Purchase Price”). The Purchase Price consists of an up-front payment of $145 million, subject to certain adjustments at closing, including a working capital adjustment, and an additional $5 million to be held in an escrow account to satisfy certain Genesys indemnification claims that may arise on or prior to the first anniversary of the sale closing, with the balance to be paid thereafter. On a fully diluted basis, Altisource owns approximately 69% of the equity of Pointillist. The Company estimates that it will receive approximately $100 million in cash at closing, subject to a working capital adjustment, and an additional $3.7 million in cash following the one-year anniversary of closing, assuming no indemnification claims. Altisource estimates it will recognize a pre-tax and after-tax gain of approximately $107 million from the sale which is anticipated to close before the end of the 2021 calendar year. The sale is subject to customary closing conditions including the receipt of regulatory consents. Pointillist is an Artificial Intelligence driven customer journey management SaaS platform that connects the dots between customer experience and business outcomes, helping companies to improve retention and reduce costs. In 2019, Altisource created Pointillist as a separate legal entity and contributed the Pointillist® customer journey analytics business and $8.5 million to it. “We are pleased to execute the definitive agreement to sell Pointillist to Genesys. We believe this transaction demonstrates that Altisource has a collection of valuable businesses that may not be fully appreciated by the capital markets. Monetizing this attractive asset strengthens Altisource’s balance sheet by adding $100 million of cash at closing and aligns Pointillist with a strategic partner to help accelerate its growth. I’d ...