Transense Technologies PLC (LON:TRT) today announced that it has agreed to sell the business (net assets and goodwill) of IntelliSAW, and receive a one-off license fee as part of the transaction to secure exclusive use of Transense Technologies’ IP relating to the IntelliSAW business, to US-based Emerson, a diversified global manufacturing company, for a total cash consideration of US$5m. The total sum payable to Transense Technologies net of all costs will be approximately £2.9m.
The sale of IntelliSAW, plus the proceeds raised from the recent placing and offer, provide Transense with a strong cash position, which will be used to accelerate commercial developments in the two remaining divisons, Translogik and SAWSense. The Transense Group (excluding IntelliSAW) has already achieved a positive EBITDA in both H1 and the full year to 30 June 2014, and with the consequential reduction in monthly Group overhead run-rate, the sale moves the Group significantly closer to breakeven. The IntelliSAW division had a net loss in the year to June 2015 of £1.04m (2014: £0.96m).
Graham Storey, CEO of Transense Technologies Plc, commented “The sale of the IntelliSAW division, to a company of the standing of Emerson, is another demonstration of the commercial value of our technology. This provides Emerson with a unique opportunity to strengthen and grow this business. I am grateful to the employees of IntelliSAW for their commitment to growth and operational excellence throughout our partnership. We now have a considerably strengthened balance sheet, and believe that the Group is well positioned to become a self-sustaining, high-growth and cash-generative business. “
Emerson, based in St. Louis, Missouri (USA), is a global leader in bringing technology and engineering together to provide innovative solutions to customers in the industrial, commercial and consumer markets around the world. The company is comprised of five business segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. Sales in fiscal 2014 were US$24.5 billion.
About Transense Technologies Plc
Based in Oxfordshire, UK, Transense has developed patent-protected sensor systems and supporting technology for use in a variety of diverse high growth markets. Transense’s Surface Acoustic Wave (SAW), wireless, battery-less, sensor systems offer significant advantages over legacy wireless sensor systems. Transense is targeting the transport and mining industries, and the global torque, temperature and pressure sensing markets, via its trading divisions Translogik and SAWSense, respectively.