Transense PLC has told DirectorsTalk that it has agreed to sell the business (net assets and goodwill) of IntelliSAW, and receive a one-off license fee as part of the transaction to secure exclusive use of Transense Technologies’ IP relating to the IntelliSAW business, to US-based Emerson, a diversified global manufacturing company, for a total cash consideration of US$5m. The total sum payable to Transense Technologies net of all costs will be approximately £2.9m.
The sale of IntelliSAW, plus the proceeds raised from the recent placing and offer, provide Transense with a strong cash position, which will be used to accelerate commercial developments in the two remaining divisons, Translogik and SAWSense. The Transense Group (excluding IntelliSAW) has already achieved a positive EBITDA in both H1 and the full year to 30 June 2014, and with the consequential reduction in monthly Group overhead run-rate, the sale moves the Group significantly closer to breakeven. The IntelliSAW division had a net loss in the year to June 2015 of £1.04m (2014: £0.96m).
Graham Storey, CEO of Transense, commented “The sale of the IntelliSAW division, to a company of the standing of Emerson, is another demonstration of the commercial value of our technology. This provides Emerson with a unique opportunity to strengthen and grow this business. I am grateful to the employees of IntelliSAW for their commitment to growth and operational excellence throughout our partnership. We now have a considerably strengthened balance sheet, and believe that the Group is well positioned to become a self-sustaining, high-growth and cash-generative business. “
