RM to sell two of its main divisions for £16m as educational tech group seeks to reduce debt
- Conditional agreement to sell RM Integris and RM Finance Business
- It will also sell the related assets of its main commercial subsidiary, RM Education.
- Proceeds from the sale will be used to reduce debt and strengthen the balance sheet
British educational technology company RM will sell two of its main divisions for £16million as it seeks to strengthen its balance sheet.
The Oxfordshire-based company has conditionally agreed to sell RM Integris and RM Finance Business, together with the related assets of its main trading subsidiary, RM Education Limited, to The Key Support Services Limited.
Neil Martin, CEO of RM, said the sale would allow the group to “better focus” resources and efforts within RM Technology “to further capitalize on the market opportunity presented by the growth of school groups over importance and the growing use of technology”.
British educational technology company RM plc has announced the sale of two of its main divisions for £16million as it seeks to focus on its target customer base
He added: “In addition to its strategic importance, the net proceeds from the sale will reduce our level of leverage across the group, supporting our transformation strategy to deliver long-term value to our stakeholders.
“RM Integris and RM Finance are both good products and will be well positioned to grow under The Key, which we believe is a good outcome for our customers, employees and other stakeholders.
‘We thank all our staff for their excellent work, in particular those of RM Integris and RM Finance Business.’
RM said the 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, up from £10.5million in the same period last year, according to its latest published figures.
That compares to revenue of 100.3 million in the six months to May 31.
An initial consideration of £12 million will be paid on completion, with the remainder payable subject to satisfaction of certain conditions, including those relating to competition clearance.
Founded in 1973, RM is a leading provider to the international education industry, with a turnover of £211 million and approximately 2,000 employees worldwide.
It provides products and services to educational institutions, examination bodies and international governments with the aim of simplifying and supporting learning.