Italy's Eurotech to sell U.S. unit for $38 mln

MILAN Tue Oct 1, 2013 5:56am EDT

MILAN Oct 1 (Reuters) - Italian technology company Eurotech has signed a deal to sell its U.S. aerospace and defence computer operation Parvus Corp to the Curtiss-Wright group for $38 million.

The sale of Parvus, which specialises in manufacturing rugged computing and communication systems to companies such as Lockheed Martin, Northrop Grumman and Boeing, allows Eurotech to exit what it now views as a non-core sector as it seeks to return to profit after its net loss last year narrowed to 2.8 million euros ($3.8 million) from 7.2 million euros in 2011.

The deal is worth about half of Eurotech's market value and the Italian company said it will use the money for investment and the development of strategic products such as pervasive and low-power computers, as well as possible acquisitions.

Eurotech bought Parvus in 2003 for about $2.3 million. The division made a core profit of $4.9 million on revenues of $20.2 million last year.

By 0945 GMT, Eurotech shares were up 2.5 percent at 1.58 euros, their highest level since the stock hit a two-year high last week.