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