Business
PROPOSED DISPOSAL OF THE BILL
PROPOSED DISPOSAL OF THE BILL.
About this update from Aptitude Software Group Plc
[{"type":"text","content":"\n RNS Number : 8203B Microgen PLC 03 November 2009 \n \nmicrogen\n \n www.microgen.com\n \n\n\n 3 November 2009\nPROPOSED DISPOSAL OF THE BILLING SERVICES DIVISION \n\nIntroduction\nThe Board of Microgen plc (\"Microgen\" or \"Group\") is pleased to announce that it has entered into a conditional agreement with Swiss Post Solutions Ltd (\"SPS Ltd\") for the sale of the Billing Services Division (\"BSD\").\nMicrogen has conditionally agreed to dispose of BSD to SPS Ltd, details of which are to be set out in the circular to shareholders to be dispatched today (\"the Circular\"). The consideration under the Disposal Agreement is £7.5 million, payable in cash on the basis of a stated level of net current assets of BSD on the date of Completion.\nIn view of the size of BSD in relation to the Group, the Disposal requires the approval of Shareholders under the Listing Rules. A notice convening a General Meeting of the Company is set out in the Circular, and it is anticipated that it will be held on 26 November 2009. Completion of the Disposal is anticipated to occur on 30 November 2009.\nBackground to and reasons for the Disposal\nBSD provides managed services to process, store and distribute billing and related documentation via electronic and print media.\nThe Board has progressively migrated BSD from its original print based delivery to electronic distribution and enhanced the service offering through the development of related value added services. During the financial year to 31 December 2008, 44 per cent. of all document output was distributed electronically.\nWhilst BSD has remained profitable with good operating margins, the Board recognises that the current business would benefit from greater scale for its long term success. Furthermore, BSD has a different operating model and customer base to the other parts of the Group and there are minimal synergies between BSD and the Group's other business activities.\nBSD reported a revenue of £2.9 million in the six month period ended 30 June 2009 (30 June 2008: £3.3 million) and an operating profit before Group overheads of £0.74 million (30 June 2008: £1.0 million). The Board has determined that for BSD to be successful in the long t...