SDL PLC Disposal of Social Intelligence (7953C)
20 April 2017 - 4:00PM
UK Regulatory
TIDMSDL
RNS Number : 7953C
SDL PLC
20 April 2017
SDL plc
Disposal of Social Intelligence
20 April 2017, Maidenhead, U.K. - SDL plc ("SDL" or the "Group";
LSE: SDL), the global innovator in language translation technology,
services and content management, today announces an agreement to
sell its Social Intelligence activities comprised of two
subsidiaries - Social Intelligence, Inc and SDL Technologies
(Vietnam) Co Ltd (together, the "Social Intelligence Business") -
to Social Data Intelligence LLC ("SDIL"). Completion of the
transaction is expected on 2 May 2017.
The Social Intelligence Business designs and develops software
and provides analysts' services to collect, analyse and interpret
Social Data.
Background to this transaction
In January 2016, SDL announced its strategic decision to divest
certain non-core elements of the Group's technology business, being
Campaigns, Fredhopper and Social Intelligence. As previously
announced, the Campaigns business was sold on 2 November 2016 and
the Fredhopper business was sold on 8 March 2017.
Details and financial impact of the transaction
SDL has signed a sale and purchase agreement with SDIL for the
sale of its Social Intelligence Business. The immediate cash
consideration for the Social Intelligence Business disposal is
GBP1. As part of the transaction, SDL has agreed to subscribe for a
$1 million unsecured 2027 loan note issued by SDIL.
The gross assets of the business being disposed amount to
approx. GBP0.4 million and this transaction is expected to lead to
a loss on disposal of approx. GBP0.5 million which will be
accounted for within discontinued activities. The Social
Intelligence Business made a loss before taxation in 2016 of GBP3.8
million which was reported as a discontinued activity in the
Group's annual report.
Adolfo Hernandez, CEO of SDL, commented: "We are delighted to
have found a home for stakeholders of the Social Intelligence
Business, including employees and customers. The transaction
concludes the sale of the Group's non-core businesses."
This announcement contains inside information.
For further information please contact:
SDL plc Tel: 01628 410
Adolfo Hernandez, Chief 127
Executive Officer
Dominic Lavelle, Chief
Financial Officer
FTI Consulting LLP Tel: 020 3727
Edward Bridges / Emma Appleton 1000
About SDL
SDL (LSE: SDL) is the global innovator in language translation
technology, services and content management. For more than 20
years, SDL has transformed business results by enabling nuanced
digital experiences with customers across the globe so they can
create personalized connections anywhere and on any device. Are you
in the know? Find out more at SDL.com and follow us on Twitter,
LinkedIn and Facebook.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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