Royalblue, the London-based supplier of the Fidessa suite of share dealing products, has offloaded its minority investment in energy business software vendor ICIS Technology Limited to Siemens Holdings generating a one-off gain in the current year of £3.6 million.
ICIS was formed in 1989 as an operating division of royalblue. Following a strategic review of its operations in 1992, royalblue divested the business by means of a buy-out backed by the ICIS management team, and retained a minority shareholding. Since that date royalblue says it has had no operational involvement in the business and has treated its holding as a trade investment at cost.
ICIS supplies software products to power companies operating in the UK and abroad. In the year to 31 March 2002 ICIS reported operating profits of £1.4 million and net assets of £2.7 million.
The cash sale for an initial consideration of £4.0 million will generate a one-off exceptional gain of £3.6 million for royalblue in the current year. A further £1 million is payable subject to future performance and completion conditions.
Royalblue intends to use the proceeds for general working capital purposes and to finance further product development in its fidessa business.