RM to sell two of its major divisions for £16m in debt cutting drive
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RM sells two of its main divisions for £16 million as the educational technology group looks to reduce its debt
- Conditional agreement to sell RM Integris and RM Finance Business
- It will also sell related assets of its main trading subsidiary, RM Education
- Proceeds from the sale will be used to reduce debt and strengthen the balance sheet
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British educational technology company RM will sell two of its main divisions for £16 million to strengthen its balance sheet.
The Oxfordshire-based company has conditionally agreed to sell RM Integris and RM Finance Business and related assets of its main trading subsidiary, RM Education Limited, to The Key Support Services Limited.
Neil Martin, CEO of RM, said the sale would allow the group to better focus resources and efforts within RM Technology to better take advantage of the market opportunities presented by the growth of larger school groups and the increasing use of technology.
British educational technology company RM plc has announced the sale of two of its key divisions for £16 million as it aims to focus on its target customer base
He added: ‘In addition to its strategic importance, the net proceeds from the sale will reduce our debt levels across the group, supporting our transformation strategy to create long-term value for our stakeholders.
‘RM Integris and RM Finance are both good products and will be in a good position to develop as part of The Key, which we believe is a good outcome for our customers, employees and other stakeholders.
‘We would like to thank all our employees for their excellent work, especially those of RM Integris and RM Finance Business.’
RM said the net proceeds from the sale will be used to reduce debt and strengthen the balance sheet.
The group had net debt of £41.5m at the end of May, compared to £10.5m at the same time last year, according to the most recently released figures.
This compares to sales of 100.3 million in the six months to May 31.
An initial fee of £12 million will be paid on completion with the balance payable subject to certain conditions being met, including those relating to competition approval.
Founded in 1973, RM is a leading supplier to the international education sector, with a turnover of £211 million and approximately 2,000 employees worldwide.
It provides products and services to educational institutions, examination authorities and international governments to simplify and support learning.