UXC completes FSG unit sale

UXC Limited (ASX:UXC) has become a pure IT business, now that the $61 million sale of its Field Solutions Group unit is complete

IT services company UXC Limited (ASX:UXC) has completed the sale of its Field Solutions Group to Cashel House for $61 million.

The company disclosed it had received net cash proceeds of around $52.5 million at completion, moving it from a net debt into a net cash position.

A $5 million chunk of the purchase price will be payable in one year, assuming earnings targets from the acquisition are met.

UXC will now bring to shareholders a proposal to allocate a 2 cent per special dividend, payable by way of a capital return from the proceeds of the sale.

Last week, UXC revealed it plans to use the remaining windfall to pursue expansion.

Managing director Cris Nicolli on Thursday said the sale transforms UXC into a pure IT business.

“Though the final stages of completion have taken longer than expected, we have achieved our divestment goal in a short time frame given the complexities of the transaction,” he said.

The company had indicated in early August that the deal was expected to close later that month.

UXC shares dipped 0.85 per cent on Thursday to $0.585.

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Tags UXC LimitedbusinessFSGCashel HouseField Solutions Group (FSG)

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