RM to sell two of its major divisions for £16m as educational technology group looks to slash its debts
- Conditional agreement to sell RM Integris and RM Finance Business
- It will also sell related assets of its principal trading subsidiary, RM Education
- Proceeds from sale will be used to reduce debt and strengthen balance sheet
British educational technology firm RM will sell two of its major divisions for £16million as it looks to strengthen its balance sheet.
The Oxfordshire-based company has conditionally agreed to sell RM Integris and RM Finance Business, and related assets of its principal trading subsidiary, RM Education Limited, to The Key Support Services Limited.
Neil Martin, RM CEO, said the sale would allow the group to ‘better focus’ resources and efforts within RM Technology ‘to take greater advantage of the market opportunity presented by the growth in larger school groups and the increasing use of technology’.
British educational technology firm RM plc has announced the sale of two of its major divisions for £16 million as it looks to focus on its target customer base
He added: ‘In addition to its strategic importance, the net proceeds of the Sale will reduce our debt levels across the group, thereby supporting our transformation strategy to deliver long term value for our stakeholders.
‘RM Integris and RM Finance are both good products and will be well placed to develop as part of The Key, which we believe is a good outcome for our customers, employees, and other stakeholders.
‘We thank all our employees for their excellent work, especially those in the RM Integris and RM Finance Business.’
RM said net proceeds from the sale will be used to reduce debt and strengthen its balance sheet.
The group had £41.5million in net debt at the end of May, compared to £10.5million at the same time last year, according to its most recently published figures.
This compares to revenues to 100.3million in the six months to 31 May.
An initial consideration of £12million will be paid on completion with the remainder payable subject to the satisfaction of certain conditions, including those relating to competition clearance.
Established in 1973, RM is a leading supplier to the international education sector, with a turnover of £211 million and approximately 2,000 employees globally.
It provides products and services to educational institutions, exam bodies and international governments in a bid to simplify and support learning.