Sale of Managed Print Services Business Unit
Maintel Holdings Plc ("Maintel" or "the Company")
Conditional Sale Agreed for the Managed Print Services Business Unit
Maintel, the leading provider of cloud and managed communication services, today announces that a conditional agreement has been entered into for the sale of its Managed Print Services Business Unit ("Business") to Corona Corporate Group Limited ("CCS") for a cash consideration of £4.5m ("Disposal"). The Disposal is in line with the Company's strategy of focusing on its transformation to a cloud-first managed services provider.
The completion of the Disposal is expected to occur on or around 16th April 2021, and is conditional upon the successful transfer of a number of key customer contracts. The Company will also be undertaking a TUPE consultation in respect of those employees who will be transferring with the Business. The consideration of £4.5m will be payable in cash on completion of the Disposal, subject to a customary working capital adjustment. Unaudited accounts for the financial year ended 31st December 2020 show the Business generated £3.3m of revenue. The Company intends to use the proceeds from the Disposal to strengthen the Company's balance sheet through a further reduction in its debt position.
Commenting on the transaction, Chief Executive Officer Ioan MacRae, said:
"This disposal is another step towards creating a simpler cloud-first managed services company. With the accelerating transformation around managed print, document and image management and document workflow, we looked at a number of options for our Managed Print Services division. In CCS we have found a superb home for our Managed Print customers and staff - their focus on customer success coupled with their technical capabilities and focus on the document management market sets them apart, and we're delighted that we'll be working with them to bring state of the art document management capabilities to our customers into the future."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.
For further information please contact:
Ioan MacRae, Chief Executive Officer 0344 871 1122
Rufus Grig, Chief Strategy Officer
Jonny Franklin-Adams/Emily Watts/Kate Bannatyne (Corporate Finance) 020 7220 0500
Richard Chambers (Corporate Broking)
Oakley Advisory Limited
Victoria Boxall 0207 766 2838
Maintel is a cloud and managed services company with a focus on communications. Its people are experienced, trusted technology advisors, who improve their clients' organisations through digital transformation.
Founded in 1991, Maintel has a proven track record of delivering communications solutions and services to both the private and public sector. In that time, the company has gained the expertise to solve the challenges associated with digital initiatives, and its managed services approach ensures clients realise the full value of their technology.
This is achieved by specialising in three key pillars of digital transformation: making organisations more effective, efficient, and collaborative with digital workplace solutions; allowing organisations to acquire, develop, and retain more business by using technology to create more meaningful customer experiences through outstanding service; ensuring organisations' employees, customers, and partners always have seamless access to their data and applications through reliable, secure connectivity.
Ongoing growth of Maintel's cloud and managed services offerings continues to allow the company to keep supporting the increasing demands of the market.
Please visit www.maintel.co.uk for more information.