Altisource Announces Definitive Agreement to Sell Pointillist Subsidiary
October 07 2021 - 8:29AM
Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”)
(NASDAQ: ASPS) today announced that the shareholders of
Pointillist, Inc. (“Pointillist”), a majority owned subsidiary of
Altisource, entered into a definitive agreement to sell all of the
equity interests in Pointillist to Genesys Cloud Services, Inc.
(“Genesys”) for $150 million (the “Purchase Price”). The Purchase
Price consists of an up-front payment of $145 million, subject to
certain adjustments at closing, including a working capital
adjustment, and an additional $5 million to be held in an escrow
account to satisfy certain Genesys indemnification claims that may
arise on or prior to the first anniversary of the sale closing,
with the balance to be paid thereafter. On a fully diluted basis,
Altisource owns approximately 69% of the equity of Pointillist. The
Company estimates that it will receive approximately $100 million
in cash at closing, subject to a working capital adjustment, and an
additional $3.7 million in cash following the one-year anniversary
of closing, assuming no indemnification claims. Altisource
estimates it will recognize a pre-tax and after-tax gain of
approximately $107 million from the sale which is anticipated to
close before the end of the 2021 calendar year.
The sale is subject to customary closing
conditions including the receipt of regulatory consents.
Pointillist is an Artificial Intelligence driven
customer journey management SaaS platform that connects the dots
between customer experience and business outcomes, helping
companies to improve retention and reduce costs. In 2019,
Altisource created Pointillist as a separate legal entity and
contributed the Pointillist® customer journey analytics business
and $8.5 million to it.
“We are pleased to execute the definitive
agreement to sell Pointillist to Genesys. We believe this
transaction demonstrates that Altisource has a collection of
valuable businesses that may not be fully appreciated by the
capital markets. Monetizing this attractive asset strengthens
Altisource’s balance sheet by adding $100 million of cash at
closing and aligns Pointillist with a strategic partner to
help accelerate its growth. I’d like to thank the Pointillist team
and wish them the best in the next phase of Pointillist’s
evolution,” said Chairman and Chief Executive Officer William B.
Shepro.
Ronald J. Rubbico, Pointillist Chief Executive
Officer, further commented, “We are looking forward to joining
Genesys, a global leader in customer experience orchestration. We
are excited by the future prospects of the combined companies and
believe together we can accelerate Pointillist’s growth.”
Pointillist is an unrestricted subsidiary under
the Company’s Senior Secured Term Loan. Altisource intends to use
the proceeds from the sale for general corporate purposes.
Forward-Looking Statements
This press release contains forward-looking
statements that involve a number of risks and uncertainties. These
forward-looking statements include all statements that are not
historical fact, including statements that relate to, among other
things, future events or our future performance or financial
condition. These statements may be identified by words such as
“anticipate,” “intend,” “expect,” “may,” “could,” “should,”
“would,” “plan,” “estimate,” “seek,” “believe,” “potential” or
“continue” or the negative of these terms and comparable
terminology. Such statements are based on expectations as to the
future and are not statements of historical fact. Furthermore,
forward-looking statements are not guarantees of future performance
and involve a number of assumptions, risks and uncertainties that
could cause actual results to differ materially. Important factors
that could cause actual results to differ materially from those
suggested by the forward-looking statements include, but are not
limited to, risks relating to the transaction with Genesys,
including in respect of the satisfaction of closing conditions and
the timing thereof; delays in obtaining regulatory and other third
party consents in connection with the transaction; unanticipated
expenditures relating to or liabilities arising from the
transaction; litigation or regulatory issues relating to the
transaction; the risks discussed in Item 1A of Part I “Risk
Factors” in our Form 10-K filing with the Securities and Exchange
Commission, as the same may be updated from time to time in our
Form 10-Q filings. We caution you not to place undue reliance on
these forward-looking statements which reflect our view only as of
the date of this release. We are under no obligation (and expressly
disclaim any obligation) to update or alter any forward-looking
statements contained herein to reflect any change in our
expectations with regard thereto or change in events, conditions or
circumstances on which any such statement is based. The risks and
uncertainties to which forward-looking statements are subject
include, but are not limited to, risks related to the COVID-19
pandemic, customer concentration, the timing of the anticipated
increase in default related referrals following the expiration of
foreclosure and eviction moratoriums and forbearance programs, the
timing of the expiration of such moratoriums and programs, and any
other delays occasioned by government, investor or servicer
actions, the use and success of our products and services, our
ability to retain existing customers and attract new customers and
the potential for expansion or changes in our customer
relationships, technology disruptions, our compliance with
applicable data requirements, our use of third party vendors and
contractors, our ability to effectively manage potential conflicts
of interest, macro-economic and industry specific conditions, our
ability to effectively manage our regulatory and contractual
obligations, the adequacy of our financial resources, including our
sources of liquidity and ability to repay borrowings and comply
with our Credit Agreement, including the financial and other
covenants contained therein, as well as Altisource’s ability to
retain key executives or employees, behavior of customers,
suppliers and/or competitors, technological developments,
governmental regulations, taxes and policies. The financial
projections contained in this press release are expressly qualified
as forward-looking statements and, as with other forward-looking
statements, should not be unduly relied upon.
About Altisource
Altisource Portfolio Solutions S.A. is an
integrated service provider and marketplace for the real estate and
mortgage industries. Combining operational excellence with a suite
of innovative services and technologies, Altisource helps solve the
demands of the ever-changing markets we serve. Additional
information is available at www.Altisource.com.
About Pointillist
Pointillist’s award-winning customer journey
management platform enables organizations to deliver frictionless,
connected and personalized experiences. By measuring, monitoring
and orchestrating customer journeys, Pointillist solutions optimize
CX and improve digital containment, contact center performance,
escalation management and more. Some of the largest companies in
the world use Pointillist to analyze billions of daily user
interactions and rely on the platform to improve customer
experience and business outcomes. Pointillist is headquartered in
Boston, Massachusetts and located on the web at
www.pointillist.com.
FOR FURTHER
INFORMATION CONTACT: |
|
Michelle D. Esterman |
Chief Financial Officer |
T: (770) 612-7007 |
E:
Michelle.Esterman@altisource.com |
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