Business
BATM enters option agreement to sell NGSoft
BATM enters option agreement to sell NGSoft.
About this update from Batm Advanced Communications Ltd.
[{"type":"text","content":"\n \n \n \n RNS Number : 3160L\n BATM Advanced Communications Ld\n 12 January 2021\n \n \n \n \n LEI: \n 213800FLQUB9J289RU66\n \n \n 12 January 2021\n \n \n \n \n \n BATM Advanced Communications Limited\n \n \n (\"BATM\" or \"the Group\")\n \n \n \n \n \n BATM enters option agreement to sell NGSoft for c. $33m \n \n \n Disposal of legacy software services subsidiary to generate funds for acceleration of core activities\n \n \n \n \n \n BATM (LSE: BVC; TASE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, announces that it has entered into an option agreement (the \"Option Agreement\") to sell NG Soft Ltd. (\"NGSoft\"), a subsidiary of the Group, for NIS 105.1m (approximately $33m) in cash to Aztek Technologies (1984) Ltd., a provider of ICT cloud services in Israel and a portfolio company of SKY Fund (the \"Buyer\").\n \n \n \n \n \n Background to the transaction\n \n \n \n \n \n BATM is focused on core areas of activity, underpinned by the Group's portfolio of intellectual property, that it expects will offer transformational growth opportunities in both its Networking & Cyber and Bio-Medical divisions. In particular, in 2020, the Group achieved fundamental milestones in progressing the development of its network function virtualisation (\"NFV\") activities, including a successful proof-of-concept of its NFVTime solution with Vodafone and securing its first tier 1 customer with a multi-year licensing agreement. In medical diagnostics, the Bio-Medical division rapidly produced multiple solutions in response to the COVID-19 outbreak that are experiencing substantial demand as the global pandemic continues. \n \n \n \n \n \n As previously stated, BATM continuously seeks opportunities to unlock shareholder value from Group subsidiaries that are considered non-core to the future of the Group. NGSoft is a software and digital services company that provides creative digital and technology solutions. Its development activities do not include any of the Group's NFV or cyber solutions. Accordingly, the Board believes that it would be in the best interests of BATM and of all shareholders to generate value from the sale of NGSoft and invest the proceeds to accelerate the Group's core activities in accordance with its strategic plan. \...