Ubisense Group PLC Ubisense Japan update (7966G)
March 06 2018 - 2:01AM
UK Regulatory
TIDMUBI
RNS Number : 7966G
Ubisense Group PLC
06 March 2018
6 March 2018
Ubisense Group plc
("Ubisense", the "Company" or the "Group")
Ubisense Japan update
Ubisense (LON:UBI), a market leader in enterprise location
intelligence solutions, today announces that it has entered into
agreements for the re-organisation of its business in Japan,
including the sale of its Japanese third party geospatial services
business.
Pursuant to the transaction, effective on 30 March 2018, it will
carve-out the Japanese geospatial services business (the "Services
Business") into a separate entity, which it has agreed to sell to a
subsidiary of FinTech Global Incorporated of Japan for a gross
consideration of JPY 100m (approximately GBP0.7m).
Alongside this transaction, Ubisense has agreed, subject to
contract completion, to acquire the 23% minority interest in its
Japanese operating company. The acquisition of this minority
interest will give the group 100% ownership of its remaining
Japanese operations.
These transactions are consistent with Ubisense's strategy of
refocussing the Group on growing revenues from its own IP whilst
managing the reduction in third party geospatial services revenues.
The sale will allow the Services Business to grow under new
ownership, whilst mitigating the Group's potential exposure to
restructuring costs and allows Ubisense to focus on accelerating
revenue growth from its own products business under its newly hired
manager in Japan.
The net proceeds raised from the sale will be used to finance
the purchase of the minority interest and to grow Ubisense's
remaining business in the region.
Details on the Services Business being sold
The Services Business that has been sold is focused on
supporting customers in the water industry using GE Smallworld
products. It represented approximately 13% (GBP3.4m) of revenue in
2016, the most recent financial year that the Group has reported,
and contributed approximately GBP0.5m of profit before impairment
charges related to the original acquisition. Given the declining
revenues and upcoming contract renewals, the Services Business was
expected to make only a minimal contribution to Ubisense's group
results in 2018.
The carve-out and disposal transaction includes the transfer of
the customer relationships, the Geoplan brand name, fixed assets
including certain market specific products, stock and 13 employees
plus temporary personnel dedicated to that part of the
business.
Richard Petti, CEO of Ubisense, said "This is another important
step for us towards generating more own IP revenues whilst
transitioning away from third party services revenues. It
represents a good solution for the Services Business in Japan and
allows our remaining Japanese business to focus on accelerating
revenue growth from Ubisense's own products."
For further information contact:
Ubisense Group plc +44 (0)1223 535170
Richard Petti
Tim Gingell
Numis Securities Limited +44 (0)20 7260 1000
Jamie Lillywhite (Corporate Finance)
Toby Adcock (Corporate Broking)
Tulcan Communications LLP +44 (0)207 353 4200
James Macey White
About Ubisense
Ubisense (AIM: UBI), is a global leader in Enterprise Location
Intelligence Solutions, proven to drive quality, reduce costs,
manage complexity and increase productivity for its customers
across the world. Central to its offering are two powerful software
platforms that can take data from any source to provide visibility
of customers' operations. Offering in-depth knowledge of the
sectors in which it operates across the world, Ubisense has long
standing relationships with many customers across target markets
including automotive, aerospace, logistics, communications and
utilities. Founded in 2002, Ubisense is headquartered in Cambridge,
England, with operations in North America, Germany, France and
Japan. www.ubisense.net
This information is provided by RNS
The company news service from the London Stock Exchange
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