(Adds analyst comments, details about deal, share movement)
By Noor Zainab Hussain
May 29 Anite Plc, which tests handset
and telecom networks, said it had sold its travel reservation
software business to the private equity arm of Lloyds Banking
Group Plc to focus on its wireless business.
Anite, whose clients include Samsung Electronics Co Ltd
and Vodafone Group Plc, sold its travel
division to LDC for 45 million pounds ($75 million) in cash.
Anite's shares rose as much as 6.5 percent on the London
Stock Exchange on Thursday afternoon.
The company said the deal was debt free and 1.7 million
pounds of the amount would be held in escrow subject to the
resolution of certain commercial considerations.
The business accounted for about 15 percent of Anite's total
revenue of 132.5 million pounds in 2013.
" ... It is a good valuation and largely as expected, but
more than that it allows them to concentrate on growth
opportunities in the mobile space," finnCap analyst Lorne Daniel
The multi-billion-dollar rollout of long-term evolution
(LTE) 4G networks in China has helped boost revenues for
telecoms testing companies, such as Spirent Communications Plc
For full-year 2015, Anite's estimated profit on disposal
will be about 30 million pounds, subject to the release of the
1.7 million pounds held in escrow and working capital
adjustments, the company said.
Fleet, Hampshire-based Anite said it would use the proceeds
from the sale to pay down its existing debt and invest further
in its wireless business.
Anite's shares were trading up 2 percent at 94.75 pence at
($1 = 0.5986 British Pounds)
(Reporting by Noor Zainab Hussain in Bangalore; Editing by
Savio D'Souza and Simon Jennings)