7digital Group PLC 7digital agrees sale of Denmark assets to TDC (9408X)
03 May 2019 - 1:04AM
UK Regulatory
TIDM7DIG
RNS Number : 9408X
7digital Group PLC
02 May 2019
2 May 2019
7digital Group plc
("7digital" or "the Company")
7digital agrees sale of Denmark assets to TDC
7digital (AIM:7DIG), the global leader in B2B end-to-end digital
music solutions, announces the sale of select technology from the
Company and its Denmark subsidiary ("7digital ApS") and transfer of
staff to TDC Group/ TDC A/S ("TDC") (the "Transaction"). TDC Group
is the largest telecommunications company in Denmark.
The Board believe this Transaction will be mutually beneficial
to both 7digital and TDC. The Transaction passes control of the
Company's bespoke technology, and the resources to maintain it, to
TDC. This technology was used by only one customer and had become
unprofitable for the Company to maintain. The annual losses to be
eliminated from the business total around GBP1.6m at the current
run rate and the net value of the assets being sold was
approximately GBP0.9m as at December 2018. This transaction means
that 7digital can now focus its resources on its productised,
cloud-hosted technology which is already used by many customers
globally.
The consideration for the Transaction is EUR1.375m in cash, of
which EUR1.0m was paid to 7digital at completion. The remainder of
the cash consideration will be retained by TDC to cover certain
potential liabilities and released by TDC to the Company by no
later than 31 January 2020 to the extent that it is not required to
meet such liabilities. The consideration is subject to customary
post-closing adjustments. The cash will be used for general working
capital.
John Aalbers, CEO of 7digital, commented:
"We're pleased that TDC, a valued client of more than a decade,
will continue to benefit from the assets (both technology and
staff) that this deal covers. The sale of bespoke technology is
part of 7digital's renewed focus on providing standardised products
that can be implemented quickly for a variety of customers."
For further information please contact:
7digital 020 7099 7777
John Aalbers, Chief Executive Officer
Julia Hubbard, Chief Financial Officer
Holly Ashmore, PR Manager
Arden Partners (nominated adviser and
broker) 020 7614 5900
07825 916 715
Ruari McGirr/ Tom Price/ Benjamin Cryer
- Corporate Finance 07747 788 221
Yellow Jersey PR
Georgia Colkin
Charles Goodwin
7digital@yellowjerseypr.com
About 7digital (http://about.7digital.com/)
7digital is the global leader in B2B end-to-end digital music
solutions. The core of its business is the provision of robust and
scalable technical infrastructure and extensive global music rights
used to create music streaming and radio services for a diverse
range of customers - including consumer brands, mobile carriers,
broadcasters, automotive systems, record labels and retailers.
7digital also offers radio production and music curation services,
editorial strategy and content management expertise.
7digital fosters industry growth and innovation by simplifying
access to music for clients such as Onkyo and TikTok (formerly
musical.ly). From years of being the largest independent producer
of programming for the BBC and powering services for partners like
Panasonic and Fender, 7digital is perfectly positioned to lead
innovation at the intersection of digital music and next-generation
radio services.
About TDC
TDC Group connects Denmark, and has a clear ambition to
facilitate and improve customer access to digital services and
content. The company is Denmark's preferred provider of
communication and entertainment services in the home and on the
move. YouSee, Telmore, Fullrate, Hiper and Blockbuster provide its
Danish customers with quick and easy access to a wide range of
music, film and TV on all platforms, anytime and anywhere. TDC
Business is creating tomorrow's growth in both large and small
Danish enterprises through providing simple, digital solutions.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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