Volt Information Sciences, Inc. Sells Computer Systems Business to NewNet Communication Technologies, LLC
03 Dicembre 2014 - 3:39PM
Business Wire
- Sharpens focus on core world-class
staffing business
- Exiting of non-core businesses in 2014
to generate annual cash flow savings of over $20 million
Volt Information Sciences, Inc. (VISI) today announced the sale
of its Computer Systems segment to NewNet Communication
Technologies, LLC, a Skyview Capital portfolio company. Volt’s
Computer Systems segment provides cloud-based contact center
services, voice self-service applications, and database software
and services to organizations around the world. NewNet is a global
provider of solutions for next generation mobile technologies
worldwide that includes Mobile Messaging and Interactive Voice
Response (IVR) platforms.
“This sale is the third and most significant divestment or exit
of a non-core business Volt has executed in the past twelve months.
As we have communicated to investors throughout 2014, our primary
goal is a more highly focused and profitable Volt. We are aligning
our portfolio of businesses around staffing and services with
similar profitability, risks, and returns on capital. Today's
announcement reflects this strategy; we are divesting a business
with significant upfront software development capital investment
and an extended payback period that is much different than our core
business. NewNet Technologies is better positioned to integrate
this business into its existing Mobile and IVR platforms, and
expand their telecom services to additional geographies and
customer groups in a more profitable manner,” said Ron
Kochman, President and Chief Executive Officer of Volt
Information Sciences, Inc.
Mr. Kochman continued, “investors will be able to assess more
clearly the company’s value, capital needs, and expected returns to
shareholders as a result of our alignment of our business portfolio
around staffing and services. The annual profitability and cash
flow savings from the businesses we exited this year of over $20
million will enable us to provide returns to shareholders, reinvest
in our core world-class staffing businesses and expedite the
reshaping of our business to generate greater long-term shareholder
value.”
The proceeds of the transaction are a $10 million note bearing
interest at one half percent (0.5 percent) per year due in 4 years
and convertible into a capital interest of up to 20% in NewNet.
Volt may convert the note at any time and is entitled to receive
early repayment in the event of certain events such as a change in
control of NewNet. The proceeds are in exchange for the ownership
of Volt Delta Resources, LLC and its operating subsidiaries, which
comprise Volt's Computer Systems segment, and payment of $4 million
by Volt during the first 45 days following the transaction. An
additional payment will be made between the parties based on the
comparison of the actual transaction date working capital amount to
an expected working capital amount of $6 million. In addition, Volt
will incur severance and related costs associated with the sale of
approximately $1 million.
To ensure a smooth transition for customers, Volt and New Net
have entered into a Transitional Services Agreement for varying
support services.
About Volt Information Sciences, Inc.
Volt Information Sciences, Inc. is a leading provider of global
infrastructure solutions in staffing acquisition for its FORTUNE
100 customer base. Operating through an international network of
servicing locations, the Staffing Services Segment fulfills IT,
engineering, administrative, and industrial workforce requirements
of its customers, for professional search and temporary/contingent
personnel as well as managed services programs. Technology
infrastructure services include telecommunications engineering,
construction, and installation; and IT managed services and
maintenance. Visit www.volt.com.
Forward-Looking Statements
This press release contains forward-looking statements. Words
such as "may," "will," "should," "likely," "could," "seek,"
"believe," "expect," "plan," "anticipate," "estimate,"
"optimistic," "confident," "project," "intend," "strategy,"
"designed to," and similar expressions are intended to identify
forward-looking statements about the Company's results of
operations, future plans, objectives, performance, intentions and
expectations. Forward-looking statements are subject to a number of
known and unknown risks, including, among others, the timing of
filing the Company's financial statements with the Securities and
Exchange Commission, general economic, competitive and other
business conditions, the degree and timing of customer utilization
and rate of renewals of contracts with the Company, and the degree
of success of business improvement initiatives, that could cause
actual results, performance and achievements to differ materially
from those described or implied in the forward-looking statements.
Information concerning these and other factors that could cause
actual results to differ materially from those in the
forward-looking statements are contained in Company reports filed
with the Securities and Exchange Commission.
Volt Information Sciences, Inc.James Whitney,
212-704-7921voltinvest@volt.com
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