BATM Advanced Communication Ltd (LON:BVC) (TASE: BVC) said it has entered into an option agreement to sell its NGSoft software and digital services business for US$33mln.
The putative buyer is Aztek Technologies, an Israeli cloud services specialist that is part of SKY Fund, a private equity group.
BATM said the deal would allow the company to focus on its areas of expertise – networking, cyber and biomedical – while the funds from the disposal would be used to grow the core businesses.
“The board believes that it would be in the best interests of BATM and of all shareholders to generate value from the sale of NGSoft and invest the proceeds to accelerate the group's core activities in accordance with its strategic plan,” the company told investors in a statement.
The option is exercisable up to March 1, 2021, though there is a provision for an extension out to May 17 “under certain predefined circumstances”.