JSE-listed technology services group Business Connexion (BCX) has entered into an agreement to sell its entire interest in its Q Link business unit to Summit Garnishee Solutions (SGS).
SGS, which is a privately held company not related to BCX, has agreed to pay R187,5m in cash for the business.
Q Link offers a platform that “overcomes the complexity of multiple disparate interfaces to a variety of collection channels, including bank debits and payroll deductions”.
BCA says Q Link’s future strategy requires greater alignment with the financial services sector.
“As a result, Q Link no longer forms part of the core business strategy of the Group and the board of directors of BCX opted to dispose of it and realise value.”
The deal is subject to the two parties obtaining the necessary regulatory approvals and SGS raising the necessary funding, hosting service-level agreements and sublease agreements, all of which must occur by no later than 31 October.
BCX says its board will consider the best application of the proceeds of the deal taking into account its strategy and funding requirements. One option is to use the funding to repurchase shares. Another to fund acquisitions. — (c) 2013 NewsCentral Media