Actua Announces Completion of Sale of FolioDynamix
January 02 2018 - 4:10PM
Actua Corporation (Nasdaq:ACTA) today announced the successful
completion of its previously announced sale of FolioDynamix to
Envestnet (NYSE:ENV). Actua realized cash proceeds of approximately
$166.3 million (approximately $1.5 million of which is being held
in escrow to satisfy potential future indemnification claims, a
purchase price adjustment and related expenses) in the FolioDynamix
Sale and will receive an additional approximately $11.6 million in
cash proceeds in the second quarter of 2018 if and to the extent
that FolioDynamix is able to meet an agreed-upon threshold under a
previously disclosed purchase price adjustment mechanism relating
to client consents.
With the sales of its interests in VelocityEHS Holdings, Inc.
and BOLT Solutions Inc. (“Bolt”) (as previously announced on
December 12, 2017) and the sale of FolioDynamix now complete, Actua
intends to set a record date and distribute substantially all of
the net proceeds from those sales later in January 2018, subject to
expenses and appropriate reserves relating to the wind-down of its
business. Following that distribution, Actua intends to accelerate
the process of winding down its operations and discharging its
remaining liabilities, including any potential liabilities relating
to the recent sales of its businesses. Accordingly, Actua expects
to significantly reduce its operating costs and to focus on
opportunities to monetize its remaining minority holdings and other
assets (including any future proceeds received from the
FolioDynamix sale and the previously disclosed potential secondary
sale of Bolt). The company’s goal is to sell its stakes in those
holdings over a 12- to 18-month period and distribute in one or
more additional cash distributions the net proceeds from those
sales, along with any other remaining cash assets (subject to
expenses and appropriate reserves), to its stockholders.
Evercore Partners served as Actua’s financial advisor, and
Dechert LLP served as Actua’s legal advisor in Actua’s sales of its
businesses.
About FolioDynamixFolioDynamix is leading the
evolution of the wealth management experience, with an end-to-end
technology solution paired with a suite of advisory tools including
model portfolios, research, and overlay management services.
Through our powerful technology platform, advisors can manage the
entire client lifecycle from proposal generation to account opening
to account management (trading and rebalancing) to reporting, all
through a sophisticated but easy-to-use cloud-based solution.
Safe Harbor Statement under Private Securities
Litigation Reform Act of 1995The statements contained in
this press release that are not historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These
forward-looking statements involve certain risks and uncertainties,
including, but not limited to, risks associated with our ability to
compete successfully in highly-competitive, rapidly-developing
markets, the valuation of public and private cloud-based businesses
by analysts, investors and other market participants, the effect of
economic conditions generally, capital spending by our customers,
our ability to retain existing customer relationships and revenue
streams and secure new ones, developments in the markets in which
we operate and our ability to respond to those changes in a timely
and effective manner, the availability, performance and security of
our cloud-based technology, particularly in light of increased
cybersecurity risks and concerns, our ability to retain key
personnel, the impact of any potential acquisitions, dispositions,
share repurchases or other strategic transactions (including in
connection with the negotiation, execution and consummation
thereof), our ability to have continued access to capital and to
manage capital resources effectively, our ability to monetize our
remaining minority investments for sufficient value and other risks
and uncertainties detailed in Actua's filings with the U.S.
Securities and Exchange Commission. These and other factors may
cause actual results to differ materially from those
projected.
Investor inquiries:Karen GreeneActuaInvestor
Relations610.727.6900IR@actua.com