Business
Disposal of Payments Business
Disposal of Payments Business.
About this update from Aptitude Software Group Plc
[{"type":"text","content":"\n \nRNS Number : 3821T Microgen PLC 03 July 2018 \n\n \nwww.microgen.com 3 July 2018\n \n \n \nDISPOSAL OF PAYMENTS BUSINESS\nMicrogen plc ('Microgen' or the 'Group') announces the disposal of its payments business, a small, non-core component of the Microgen Financial Systems division to CJJ Investments Limited, a wholly-owned subsidiary of a large US technology group, for cash consideration of £6.9 million. The payments business provides a series of BACS payment products and supporting services to a wide range of businesses in the UK generating revenue in 2017 of £1.4 million and an operating profit of £1.0 million.\nThe disposal of the non-core payments business will enable Microgen Financial Systems to concentrate its resources on its Trust & Fund Administration business ('T&FA'), the strategic focus of the business. Adjusting for the disposal of the payments business, T&FA represented 67% of Microgen Financial Systems' revenue in 2017.\nThe Group will retain the proceeds from the transaction to support Microgen Financial Systems' acquisition strategy with potential acquisitions continuing to be actively evaluated within T&FA and adjacent sectors where there is the potential to leverage Microgen Financial Systems' existing technology. \nThe disposal will be effected by the sale of shares in the Group's subsidiary company, Microgen Banking Systems Limited, with no corporation tax payable on the proceeds. The gross assets of Microgen Banking Systems Limited at disposal are approximately £2.3 million of which £1.7 million represents goodwill.\n \nContacts\nPhilip Wood, Chief Financial Officer 020-7496-8100\n \nJames Melville-Ross / Darius Alexan...