iCoreConnect Inc. Announces Agreement to Divest MSP Division to T20 in an Asset Sale, Expecting to Deliver Strategic and Financial Advantages for Investors
02 October 2024 - 6:00AM
iCoreConnect Inc. (NASDAQ: ICCT), a prominent cloud-based software
and technology provider dedicated to enhancing workflow efficiency
and profitability through its enterprise and healthcare platform,
today announced it has entered into an agreement to divest its
Managed Service Provider (“MSP”) Division to The 20, LLC through an
asset sale.
This strategic divestiture is expected to provide significant
benefits for the Company and its investors, including:
1. Focus on Core Competencies
- Resource Optimization: This move allows the Company to
allocate resources more effectively to its primary business lines,
enhancing overall efficiency.
- Leadership Focus: By divesting non-core assets,
management can concentrate on core operations and growth
opportunities, leading to better decision-making and long-term
success.
2. Financial Benefits
- Capital Generation: The asset divestiture will generate
capital that will be used to reduce debt and reinvest in core areas
of the business.
- Improved Financial Performance: The Company expects this
divestiture to enhance key financial metrics such as profit margins
as the MSP Division operated at lower margins compared to our SaaS
offerings.
- Streamlined Operations: Focusing on higher-margin
business lines will simplify and strengthen our operational
model.
3. Strategic Repositioning
- Aligned Strategy: This move supports the Company’s goal
of streamlining operations and focusing on higher-margin SaaS
opportunities that better align with our long-term strategic
objectives.
4. Simplified Structure
- Operational Agility: A leaner organizational structure
will reduce complexity and enhance the Company’s ability to quickly
respond to market dynamics and competitive pressures.
5. Increased Investor Appeal
- Focused Strategy: The Company believes that focusing on
its core SaaS business will create a more streamlined,
easier-to-analyze company for investors.
This asset divestiture represents a significant step toward
positioning iCoreConnect for sustained growth and long-term success
in our core markets.
About iCoreConnect Inc.
iCoreConnect Inc. is a market leader in cloud-based software and
technology solutions, designed to enhance workflow productivity and
profitability in the enterprise and healthcare sectors. Through its
innovative platform of applications and services, iCoreConnect
helps organizations optimize their operations and achieve better
business outcomes.
Forward-Looking Statements
Some of the statements in this release are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, Section 21E of the Securities Exchange Act of 1934 and the
Private Securities Litigation Reform Act of 1995, which involve
risks and uncertainties. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable as of the date made, expectations may prove to have been
materially different from the results expressed or implied by such
forward-looking statements. The Company has attempted to identify
forward-looking statements by terminology including ‘believes,’
‘estimates,’ ‘anticipates,’ ‘expects,’ ‘plans,’ ‘projects,’
‘intends,’ ‘potential,’ ‘may,’ ‘could,’ ‘might,’ ‘will,’ ‘should,’
‘approximately’ or other words that convey uncertainty of future
events or outcomes to identify these forward-looking statements.
These statements are only predictions and involve known and unknown
risks, uncertainties, and other factors, including those discussed
under Item 1A. “Risk Factors” in the Company’s most recently filed
Form 10-K filed with the Securities and Exchange Commission (“SEC”)
and updated from time to time in its Form 10-Q filings and in its
other public filings with the SEC. Any forward-looking statements
contained in this release speak only as of its date. The Company
undertakes no obligation to update any forward-looking statements
contained in this release to reflect events or circumstances
occurring after its date or to reflect the occurrence of
unanticipated events.
Investor Contacts:IR@icoreconnect.com888.810.7706, ext 5
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