SofTech today announced that it has agreed to sell its Product Lifecycle Management (“PLM”) technologies, including it ProductCenter and Connector product lines, to Essig Research Inc. (“Essig”) in exchange for $3.25 million plus contingent payments based on revenue in the two years immediately following the closing of the transaction. The closing of this asset sale, which is subject to the approval of SofTech’s shareholders and other customary closing conditions, is expected to occur by October 2016. The transaction is not subject to any financing condition.
“In March 2011, the management team took a controlling equity stake in SofTech with a plan to implement operational improvements, develop new revenue streams, grow the revenue and reduce the debt while seeking opportunities to monetize the existing assets for the benefit of the shareholders,” said Joe Mullaney, SofTech’s CEO. “This transformative transaction will give the Company the liquidity we believe it needs to take advantage of a significant market opportunity with its newly released HomeView technology. We believe the transaction is beneficial to our shareholders, customers and employees alike and we look forward to a seamless transition,” he added.
The PLM product line will complement Essig’s long standing engineering services business, which includes major multinational clients. Joe Daly, Essig’s president, said that “We are very excited about the growth possibilities from this transaction. In the past two years, Essig and SofTech have already successfully provided solutions to each other’s existing clients. Going forward we expect to accelerate this introduction of solutions to each other’s historical client base."
To view the original press release, please click here.
Search for SofTech on CIMdata.com
