MILAN Oct 1 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