Jaywing PLC Disposal (8326H)
20 November 2018 - 6:01PM
UK Regulatory
TIDMJWNG
RNS Number : 8326H
Jaywing PLC
20 November 2018
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Date: 19 November 2018
On behalf of: Jaywing plc ("Jaywing", "the Company" or "the Group")
Embargoed: 0700 hrs 20 November 2018
Jaywing plc
Disposal of HSM Limited
&
Services Agreement
Jaywing plc (AIM: JWNG), the data science led agency,
consultancy and technology business announces that it has exchanged
contracts for the conditional sale of its contact centre business,
HSM Ltd ("HSM") to Bidco ("Bidco"), which is backed by Aquiline
Capital Partners LLC ("Aquiline"), a New York and London-based
private equity firm investing in financial services and technology.
The sale follows a competitive sales process involving several
interested parties.
Pursuant to the sale agreement, the cash consideration
receivable by Jaywing is GBP500k, with the business being sold on a
cash free, debt free basis. In addition, Jaywing has entered into a
three-year services agreement with Bidco. The services range from
branding through to digital transformation with Jaywing's expertise
in Artificial Intelligence being used to transform existing
processes and provide better outcomes for clients. Completion of
the sale is conditional on Bidco obtaining FCA consent regarding
the change of control, which is expected to be obtained within 30
working days. The services agreement will provide Jaywing with a
minimum of GBP360k during the three-year period.
Bidco is an ideal acquirer for HSM in providing the environment
and investment for the business to flourish as well as an exciting
and significant new client for Jaywing.
HSM recorded GBP6,030k of revenue and an EBITDA of GBP136k and a
loss before tax of GBP30k for the year ended 31 March 2018. As at
31 March 2018, HSM had net assets of GBP1.2 million.
The Board believes that the disposal of the contact centre
business is an important strategic step in allowing management to
focus on its higher margin and higher growth core business. It also
strengthens the balance sheet; provides a sizeable and ongoing
revenue stream; reduces a lease obligation and provides a clearer
view of the margin (actual and potential) of the core business.
Jaywing PLC CEO Rob Shaw commented: "The disposal of our contact
centre business is an important non-core asset disposal, which will
allow management to concentrate entirely on developing the core
business and simplify the Jaywing offering. I'd like to thank the
staff at HSM for their professionalism and look forward to working
with Bidco to help make their new venture a big success".
Bidco has indicated that it will continue to invest in the
business and is focused on its continued growth.
Enquiries:
Jaywing plc
Michael Sprot (Company Secretary) Tel: 0114 281 1200
Cenkos Securities plc
Nicholas Wells / Callum Davidson Tel: 020 7397 8900
Bidco / Aquiline Capital
Partners
Alex Yankus / Harry Mayfield Tel: +1 212 333 3810
(Brunswick Group)
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END
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