discoverIE Group PLC, a designer, manufacturer and supplier of customised electronics to industry, said it will sell Vertec Scientific SA Proprietary Ltd to the management team and key employees of the South African distribution business.
Vertec, which is part of the Custom Supply division, is an importer and supplier of medical equipment and related consumables in South Africa.
discoverIE will receive an initial 25mln South African rand (£1.25mln) in cash, before transaction costs and completion adjustments, and a deferred consideration of 20mln rand payable in cash over the next three years.
The sale is subject to regulatory approvals which are expected to be received during the third quarter of the current financial year.
The Custom Supply division comprises of only two businesses - Acal BFi and Vertec – with Acal BFi accounting for most of the divisional revenue.