Business
Disposal of Sira Defence and Security Limited
Disposal of Sira Defence and Security Limited.
About this update from Volvere Plc
[{"type":"text","content":"\n \nRNS Number : 0476A Volvere PLC 23 May 2019 \n\n23 May 2019\nVolvere plc \n(\"Volvere\" or the \"Company\")\nDisposal of Sira Defence and Security Limited\nVolvere (AIM: VLE), the growth and turnaround investment company, is pleased to announce the disposal today of Sira Defence and Security Limited (\"Sira\"), its digital CCTV viewing software business, to Nice Systems UK Limited (\"NICE\"), a subsidiary of Nice Limited, a global enterprise software solutions provider, listed on the Tel Aviv Stock Exchange (TLV: NICE) and NASDAQ (NASDAQ: NICE), (the \"Disposal\").\nThe total consideration, which is payable in cash, is expected to be approximately £3.0 million, subject to an adjustment based on the level of working capital at the time of completion.\nAs is customary in such transactions, a proportion of the consideration (£0.24 million) will be held in an escrow account for 18 months post-completion.\nVolvere owns 100% of the ordinary shares in Sira and is disposing of its entire stake in the company. Volvere is expected to retain approximately £2.55 million of the total consideration after taking into account transaction costs, incentive payments and bonuses payable to staff and management relating to the performance of Volvere. Approximately £0.32 million of the bonuses referred to above will be paid to the executive directors, and is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules. David Buchler, the sole independent director and Chairman of the Remuneration Committee, considers, having consulted with the Company's nominated adviser, Cairn Financial Advisers LLP, that the terms and amounts of the payments are fair and reasonable insofar as the Company's shareholders are concerned.\nBackground to and reason for the Disposal\nSira has developed what we believe to be unique intellectual property, albeit in a niche market area. The Board believes that the acquisition by NICE will provide opportunities for Sira's technology to be offered through NICE's international network and therefore to provide enhanced opportunities for the company and its staff than would be achievable operating independently within Volvere.\nVolvere acquired Sira in 2006 for a consideration of approximately £0.005 million and has made follow-on working capital loans. During its period of ownershi...