Aurionpro Solutions announced exit from the cybersecurity business with the sale of its investment to Forcepoint LLC., USA.
The deal, for the divestment of all stake held by Aurionpro in its cyber security business is valued at a consideration of US$9.6 Million (approx. Rs 71 crore) which is net off all taxes and obligations. Forcepoint LLC, USA is a global leader in data-first cybersecurity solutions.
Out of the total consideration, Rs 45 crore will be received upfront and remaining amount to be received in tranches over a year upon fulfilment of contractual warranties and earn out.
Necessary agreements for this purpose has been signed on 06th May, 2021 and the transaction will be concluded immediately after completion of the documentation, Aurionpro Solutions said.
The cash proceeds from this deal will help accelerate the company's plan to be effectively debt free by sometime after Q2 this year. The deal will also help financially as the strong and lean balance sheet is expected to significantly improve key performance indicators in the coming quarters, the company said.
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Paresh Zaveri, CMD - Aurionpro Solutions while announcing the exit said that there was a long road ahead in scaling up the business in the wake of covid-19 related disruptions and political instability in the region where the company had signed key deal. The Covid-19 restrictions were causing inordinate delays in some large deals, particularly in the South Asian region.
The announcement was made after market hours yesterday, 6 May 2021. Shares of Aurionpro Solutions fell 1.55% to settle at Rs 159.20 yesterday.
Aurionpro Solutions is a global technology solutions leader that helps enterprises accelerate their digital innovation, securely and efficiently.
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