Adept4 reaches settlement with managed IT vendors with 'small cash inflow'

IT-as-a-service provider Adept4 has successfully settled its legal dispute with the vendors of Adept4 Managed IT, it announced on Thursday, as it outline in its interim results for the six months ended 31 March.

The AIM-traded firm said that, under the terms of the agreement, neither the deferred consideration of £1m which was due in January, nor the contingent consideration of up to £1.5m, will be paid by the company to the vendors.

In addition, the vendors agreed to pay a cash sum to Adept4 in November which - following the payment of legal fees incurred by Adept4 as a result of the dispute - would result in a small cash inflow to the company.

“As detailed in the group's financial statements for the year ended 30 September 2017, the provision in relation to contingent consideration had already been released in full due to the group's assessment at that time that the performance criteria for achievement of the earn-out had not been met,” the Adept4 board said in its statement.

“The provision of £1m held in the interim results in relation to the deferred consideration will now be released in full.”