Ricardo PLC Ricardo plc divests its Software business unit (5027U)
02 Août 2022 - 8:00AM
UK Regulatory
TIDMRCDO
RNS Number : 5027U
Ricardo PLC
02 August 2022
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Ricardo plc divests its Software business unit
Ricardo plc, a global strategic, environmental and engineering
consultancy company, today announces that it has completed the sale
of Ricardo's Software business unit comprising of shares in the UK,
US and Czechia companies of Ricardo Software together with related
assets ("Ricardo Software") to FOG Software Group, a division of
Constellation Software Inc (CSI).
The disposal forms part of Ricardo's sharpened strategy to
optimise its portfolio as it repositions itself for long-term and
sustainable growth in environmental and energy-transition
solutions. The proceeds will be reinvested into opportunities that
offer attractive growth, whilst allowing the Ricardo Software
business to grow under different ownership.
Ricardo Software is a trusted technology partner to the world's
leading transport OEMs and Tier 1 suppliers, providing a full suite
of automotive simulation design tools for propulsion and
transmission design solutions. It is within this context, Ricardo
considers that FOG Software Group is ideally placed for the Ricardo
Software's next stage of growth, given its STEM portfolio of
businesses, which include CFD, visualisation & analysis
software companies, and its ethos on building and growing
market-leading software businesses. As part of the transaction,
Ricardo will continue to have access to software licenses from FOG
Software Group, ensuring continuity of service to its Automotive
and Industrial customers.
The maximum cash consideration receivable is $20.5 million
(GBP16.8m). Ricardo will receive cash of $17.5m (GBP14.3m) on
completion and this may increase by a further $3.0 million
(GBP2.4m) based on Ricardo Software achieving certain revenue
targets in the 12-month period post-completion. The above figures
include adjustments for cash and net working capital.
Ricardo Software generated revenue of GBP9.3 million (unaudited)
and underlying operating profit of GBP1.8 million (unaudited) for
its financial year ended 30 June 2022, with gross assets at 30 June
2022 of GBP11.2 million (unaudited). In the year ended 30 June
2021, Ricardo Software generated revenue of GBP10.3 million
(unaudited) and underlying operating profit of GBP2.3m (unaudited)
on a like for like basis, after adjusting for the impact of
intercompany transactions with the rest of the Ricardo Group. Gross
assets were GBP7.5m (unaudited) at 30 June 2021. As part of the
disposal, Ricardo Software's management will transfer with the
business and lead the ongoing business within FOG's STEM
portfolio.
Graham Ritchie, Ricardo plc CEO said: "The divestment
demonstrates further progress in optimising Ricardo's portfolio.
This, together with our acquisition of Inside Infrastructure
earlier this year, presents positive momentum towards our ambition
to become a leading strategic and engineering consultancy for
environmental and energy transition solutions."
ENDS
About Ricardo
Ricardo plc is a global strategic, environmental, and
engineering consulting company, listed on the London Stock
Exchange. With over 100 years of engineering excellence and
employing close to 3,000 employees in more than 20 countries, we
provide exceptional levels of expertise in delivering innovative
cross-sector sustainable outcomes to support energy transition and
scarce resources, environmental services together with safe and
smart mobility. Our global team of consultants, environmental
specialists, engineers and scientists support our customers to
solve the most complex and dynamic challenges to help achieve a
safe and sustainable world. Visit www.ricardo.com
Media contacts:
Natasha Perfect, Ricardo Natasha.perfect@ricardo.com
Elisabeth Cowell, Sec Newgate ricardo@secnewgate.co.uk
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