Horizon to dispose of its Cisco Training business for €12m
Horizon Technology Group has entered into an agreement to dispose of its Cisco Training business to Azlan Group on a debt free basis for a consideration of €12m.
Of the consideration, €1.1m will be retained for a period of one year pending satisfactory completion of normal commercial warranties.
Cisco's Training business has operations in the UK, Italy, Denmark, Sweden and Ireland and is Cisco's main internetworking, training and consulting organisation in Europe.
The proposed disposal includes all operations, with the exception of the Irish division.
The business being sold currently employs 62 staff and is managed as a separate operational entity within the Horizon Technology Group.
Its turnover peaked at €25m in the year ending 30th June, 2001. However, since then, its has been impacted by the downturn in IT spending and for the six month financial period ended 31December, 2001, it had turnover of €8.6m, made a loss after taxation of € 0.9 million as at 31December, 2001 had net liabilities of €4.2m [net of inter-company loans.]
Horizon says that the strategic rationale for the disposal is that it will improve profitability and shareholder value by reducing the Group's borrowings and enable the company to concentrate on its consulting and systems integration businesses in the UK and Ireland.
An Extraordinary General Meeting of shareholders will be held on 28th June to approve of the disposal.
