RM Plc (LSE:RM.) said it has conditionally agreed to sell RM Integris and RM Finance, part of its principal trading subsidiary RM Education Limited (RMEL), for up to £16mln in cash to The Key Support Services Limited.
In London, RM shares rallied close to 10% higher following the announcement, changing hands at slightly over 45p.
The sale is part of its strategy to restructure the RM Technology Division and refocus on its core Managed Services business, the education technology company said.
"This sale allows RM to better focus our resources and efforts within RM Technology to take greater advantage of the market opportunity presented by the growth in larger school groups and the increasing use of technology,” commented RM chief executive officer Neil Martin in a statement.
An initial consideration of £12mln will be paid on completion, expected in the first half of 2023, with the remainder payable subject to the satisfaction of certain conditions.
RM said it will use the net disposal proceeds to reduce debt and strengthen its balance sheet.
“In addition to its strategic importance, the net proceeds of the sale will reduce our debt levels across the group, thereby supporting our transformation strategy to deliver long-term value for our stakeholders,” added Martin.
--UPDATED to add share price detail, first published 7:42am--