Trintech sells off healthcare division for US$34.5m in cash

2 Apr 2010

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The Nasdaq-listed Irish financial tech company Trintech founded by brothers John and Cyril McGuire has sold off its healthcare division Concuity for US$34.5m in cash, it emerged last night.

The company, which began by making payment terminals and is now a major provider of integrated financial governance, risk management and compliance software, has sold its healthcare division to The Advisory Board Company, a Washington-based company that provides executive research and business intelligence services to hospitals and other healthcare providers.

For its financial year 2009, Trintech posted revenues of US$32.5m, down 5pc on last year. It generated US$2.6m in cash and prior to the sale of its healthcare division had a cash balance of US$20.1m.

The US$34.5m purchase price is subject to a working capital adjustment, and an escrow amount of US$6m has been set aside with US$2m to be released after nine months and the remainder no later than 31 December 2011, subject to post-closing conditions.

“Following the sale of our healthcare division, Concuity, to The Advisory Board Company, Trintech has a strengthened balance sheet of over $48m in cash and is positioned for profitable growth in our Financial GRC business globally,” Cyril McGuire, chairman and CEO of Trintech, explained.

By John Kennedy

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com