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The transaction for the business, being executed on a slump sale basis, is valued at $22.5 million and the shares valued at $20.9 million. Four Soft has also agreed to sell or otherwise transfer its entire investments in the share capital of its foreign subsidiaries (Four Soft Singapore Pte Ltd, Four Soft BV and Four Soft USA Inc).
“Given the highly competitive environment, persisting consolidation trends within the software industry and the need for significant investments for future growth, the company is of the opinion that this would be an opportune time to exit the business and focus on newer and emerging areas,” it said in a statement. The transaction is expected to close within 90 days.
Four Soft chairman and managing director Palem Srikanth Reddy would be paid $1.71 million for providing non-compete and non-solicitation undertaking for a period of five years and in addition performing services as an independent contractor for a limited period with a view to ensuring smooth transition.
