Volt Information Sciences Enters into Agreement to Sell Quality Assurance Testing Unit of VMC for $66.4 Million
24 Ottobre 2017 - 12:38PM
Business Wire
Volt Information Sciences, Inc. (“Volt” or the “Company”)
(NYSE-MKT:VISI), an international provider of staffing services
and managed service programs, today announced that it has entered
into a definitive agreement to sell its quality assurance testing
business (the “Business”), a part of its Technology Outsourcing
Services and Solutions segment. The buyer, Keywords International
Limited (“Keywords”), is a leading international technical services
provider to the global video games industry. The Business, known in
the industry as VMC, provides production development, QA testing
and customer support to companies primarily in the video gaming and
mobile industries. The sale will not include the call center
services unit of the Company’s Technology Outsourcing Services and
Solutions segment, which Volt will continue to own and operate.
Under the terms of the Stock Purchase Agreement, Volt will
receive $66.4 million in cash at closing, subject to customary
working capital adjustments. The sale is conditioned upon Keywords’
satisfaction of a financing contingency to fund the purchase
price.
“The disposition of these non-core assets, which represent
approximately 5% of Volt’s global revenue, will allow Volt to
become a pure-play staffing company. I am confident that the
Business will continue to prosper under Keywords’ management,” said
Michael Dean, Volt’s President and Chief Executive Officer. “The
anticipated cash proceeds from the sale will significantly
strengthen Volt’s balance sheet and notably bolster our liquidity
position. Importantly, this transaction will help streamline our
operational focus within our core staffing business, where we are
best positioned to create long-term shareholder value.”
Upon the closing of the sale, which is anticipated shortly,
Volt’s current financing agreement with PNC Bank will require a $25
million paydown of our outstanding debt. Volt’s board of directors
and management continue to review a broad range of options to drive
shareholder value and advance the Company’s plan for growth. We
look forward to further communication with our shareholders
regarding potential opportunities in the near future.
Information concerning this transaction was filed by Volt today
with the Securities and Exchange Commission and can be obtained at
www.sec.gov or the ‘Investors’ section of Volt’s website at
www.volt.com.
Milbank, Tweed, Hadley & McCloy LLP acted as legal advisor
to Volt in connection with the transaction.
About Volt Information Sciences, Inc.
Volt Information Sciences, Inc. is a global provider of staffing
services (traditional time and materials-based as well as
project-based) and managed service programs. Our staffing services
consists of workforce solutions that include providing contingent
workers, personnel recruitment services, and managed services
programs supporting primarily professional administration,
technical, information technology, light-industrial and engineering
positions. Our managed service programs consist of managing the
procurement and on-boarding of contingent workers from multiple
providers. Our complementary businesses offer customized talent,
technology and consulting solutions to a diverse client base. Volt
services global industries including aerospace, automotive, banking
and finance, consumer electronics, information technology,
insurance, life sciences, manufacturing, media and entertainment,
pharmaceutical, software, telecommunications, transportation, and
utilities. For more information, visit www.volt.com.
Forward-Looking Statements
This press release contains forward-looking statements that are
subject to a number of known and unknown risks, including, among
others, whether the contemplated sale of the Business will be
consummated, whether Keywords will be successful in completing the
financing transaction it intends to utilize in order to fund its
contemplated purchase of the Business, 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 certain
of 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. Copies of the Company’s latest Annual Report on Form
10-K and subsequent Quarterly Reports on Form 10-Q, as filed with
the Securities and Exchange Commission, are available without
charge upon request to Volt Information Sciences, Inc., 1133 Avenue
of the Americas, New York, New York 10036, Attention: Shareholder
Relations, 212-704-7921. These and other SEC filings by the Company
are also available to the public over the Internet at the SEC’s
website at http://www.sec.gov and at the Company’s website at
http://www.volt.com in the Investors section. Although the Company
is actively pursuing the consummation of the contemplated sale of
the Business, there can be no assurance that such transaction will
be completed. The Company undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20171024005842/en/
Investor Contacts:Volt Information Sciences,
Inc.voltinvest@volt.comorAddo Investor RelationsLasse
Glassen424-238-6249lglassen@addoir.com
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