JSE-listed technology services firm EOH is disposing of 100% of its shares in its Information Services business to Bachique 842 for the base purchase price of R417 million.
The deal, which is subject to EOH shareholder approval, was announced today, with the technology company saying this is an expansion of its strategic intent of improving liquidity and reducing debt.
This development comes as EOH CEO Stephen van Coller and his team are steadily making progress in key EOH strategic initiatives, including optimising the cost and capital structure, while focusing on quality of earnings.
“This disposal forms part of creating a fit-for-purpose capital structure that is adequately supported by its cash flows,” EOH notified shareholders today.
In the notice, EOH says Information Services provides credit checks, background screening and big data, analytics and technology in SA.
EOH notes Information Services has evolved over the years from a data provider to a “holistic solution provider for risk mitigation and data analysis tools”, with each division focusing on a specific sub-set of data-driven solutions.
Bachique 842 is a wholly-owned subsidiary of LR Africa Holdings.
In a statement, EOH says LR Africa is advised by Lightrock, a global private equity platform.
Commenting on the transaction, Van Coller says: “This transaction is in line with our strategy of disposing of a targeted group of IP companies as part of the group’s deleveraging processes and represents a significant milestone in the implementation of these processes.
“The achievement of a more sustainable capital structure will allow the group flexibility to execute on its long-term growth strategy. I’d like to express my thanks to the Information Services team and wish them the very best in their future endeavours with Lightrock.
“I believe Lightrock is the right partner to unlock Information Services’ full potential, enabling both future growth and international expansion in its operations for the company and its people.”
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