Altisource Announces the Completion of the Sale of Its Pointillist Subsidiary
02 December 2021 - 2:38AM
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, closed on the previously announced transaction to sell
all of the equity interests in Pointillist to Genesys Cloud
Services, Inc. (“Genesys”).
The Company received $102.2 million in cash at
closing, and anticipates receiving an additional $3.5 million in
cash from an indemnification escrow account following the one-year
anniversary of closing, assuming no indemnification claims, and
$0.3 million in cash from a working capital escrow account,
assuming no working capital adjustments in excess of established
thresholds. Altisource estimates it will recognize a pre-tax and
after-tax gain of approximately $107 million from the sale before
any potential reduction of goodwill.
“We are pleased to complete the sale of
Pointillist to Genesys. This strengthens Altisource’s balance sheet
by adding $102.2 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.
Pointillist was an unrestricted subsidiary under
the Company’s Senior Secured Term Loan. Altisource intends to use
approximately $20 million of the proceeds from the sale to repay
the outstanding balance on the Company’s revolving credit facility
with STS Master Fund, Ltd., which credit facility remains available
to Altisource, and intends to use the remaining 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 indemnification claims related to fundamental
representations and warranties and against amounts retained in the
escrow account; 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 report. 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 and scenarios 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. EstermanChief Financial OfficerT: (770) 612-7007E:
Michelle.Esterman@altisource.com
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