Business
Disposal
Disposal.
About this update from Tribal Group Plc
[{"type":"text","content":"\n \nRNS Number : 5504Q Tribal Group PLC 01 March 2016 \n\nTHIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.\n \n \n \nTribal Group plc\n(\"Tribal\" or the \"Group\")\n \nProposed Disposal of Synergy Business for £20.25 million\n\nHighlights\n \n· Tribal Group plc, a leading provider of software and services to the education management market, is pleased to announce it has agreed to dispose of its Synergy children's services management information system business to Servelec Group plc (the \"Disposal\")\n \n· The consideration receivable for the Synergy business is £20.25m, payable in cash on completion\n \n· The net proceeds from the transaction will be applied in reducing Group net debt\n \n· The disposal of Synergy will strengthen Tribal's focus on its core business. Tribal provides software and services that support principally the management of universities, colleges and schools. Synergy supplies management information system software to children's services departments of local authorities in the United Kingdom and, accordingly, is considered to be non-core\n \n· The unaudited adjusted EBITDA (see below) for Synergy for the year ended 31 December 2015 was £2.3m\n \n· The Disposal is conditional on the approval of Tribal Shareholders\n \n· In December 2015, the Board announced a proposed rights issue of up to £35m, in respect of which £30m was underwritten on a standby basis by Investec, the proceeds of which will be used primarily to reduce debt (the \"Rights Issue\"). Given the net proce...