COLUMBIA, Md., Oct. 7, 2020 /PRNewswire/ -- Global workforce
transformation solutions provider GP Strategies Corporation (NYSE:
GPX) today reported the completion of its divestiture of its IC
Axon business division to CM Canada Acquisitions, Inc., a
wholly-owned subsidiary of ClinicalMind, LLC, a leading
healthcare communications company. ClinicalMind paid GP Strategies
approximately $28 million in cash for
the business, subject to an adjustment based on the final
determination of the business's working capital as of closing, of
which $1.5 million was placed into
escrow for 12 months. Up to an additional $2
million of consideration may be paid to GP Strategies if IC
Axon achieves certain revenue objectives for calendar year
2020. The acquired IC Axon business has trailing twelve-month
revenue of approximately $12.5
million as of June 30,
2020.
"Our sales of assets in the last year have improved our
liquidity and focused our efforts toward our largest industry
verticals," stated Mike Dugan, Chief
Financial Officer. Gross proceeds from the sales in the past 12
months represented approximately $53
million. The total trailing twelve-month revenue stream for
the businesses sold, as of the date of closing of each acquisition,
was approximately $30 million. The
company generated approximately $234
million in revenue from the first six months of 2020, which
included approximately $5.7M of
revenue from the businesses sold.
"We believe that our proactive approach during the pandemic has
positioned the company for long-term success and provided us with
more bandwidth to focus on our core strategy and growth in a more
concise platform," said Adam
Stedham, Chief Executive Officer.
About GP Strategies
GP Strategies Corporation (NYSE:
GPX) is a global workforce transformation solutions provider of
training, digital learning strategies and solutions, management
consulting, and engineering services. GP Strategies' solutions
improve the effectiveness of organizations by delivering innovative
and superior training, consulting, and business improvement
services, customized to meet the specific needs of its clients.
Clients include Fortune 500 companies, automotive, financial
services, technology, and other commercial and government
customers.
Forward Looking Statement
We make statements in this
press release that are considered forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934.
These statements reflect our current expectations concerning future
events and results. We use words such as "expect," "intend,"
"believe," "may," "should," "could," "anticipates," and similar
expressions to identify forward-looking statements, but their
absence does not mean a statement is not forward-looking. These
statements are not guarantees of our future performance and are
subject to risks, uncertainties, and other important factors that
could cause our actual performance or achievements to be materially
different from those we project. For a full discussion of these
risks, uncertainties, and factors, we encourage you to read our
documents on file with the Securities and Exchange Commission,
including those set forth in our periodic reports under the
forward-looking statements and risk factors sections. Except as
required by law, we do not intend to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
© 2020 GP Strategies Corporation. All rights reserved. GP
Strategies and the GP Strategies logo design are trademarks of GP
Strategies Corporation.
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SOURCE GP Strategies Corporation