MAIDENHEAD, England--(BUSINESS WIRE)--SDL plc ("SDL" or the "Group"; LSE: SDL), the global innovator in language translation technology, services and content management, today announces an agreement to sell its Social Intelligence activities comprised of two subsidiaries - Social Intelligence, Inc and SDL Technologies (Vietnam) Co Ltd (together, the “Social Intelligence Business”) - to Social Data Intelligence LLC ("SDIL"). Completion of the transaction is expected on 2 May 2017.
The Social Intelligence Business designs and develops software and provides analysts’ services to collect, analyse and interpret Social Data.
Background to this transaction
In January 2016, SDL announced its strategic decision to divest certain non-core elements of the Group's technology business, being Campaigns, Fredhopper and Social Intelligence. As previously announced, the Campaigns business was sold on 2 November 2016 and the Fredhopper business was sold on 8 March 2017.
Details and financial impact of the transaction
SDL has signed a sale and purchase agreement with SDIL for the sale of its Social Intelligence Business. The immediate cash consideration for the Social Intelligence Business disposal is £1. As part of the transaction, SDL has agreed to subscribe for a $1 million unsecured 2027 loan note issued by SDIL.
The gross assets of the business being disposed amount to approx. £0.4 million and this transaction is expected to lead to a loss on disposal of approx. £0.5 million which will be accounted for within discontinued activities. The Social Intelligence Business made a loss before taxation in 2016 of £3.8 million which was reported as a discontinued activity in the Group's annual report.
Adolfo Hernandez, CEO of SDL, commented: "We are delighted to have found a home for stakeholders of the Social Intelligence Business, including employees and customers. The transaction concludes the sale of the Group’s non-core businesses."
This announcement contains inside information.
SDL (LSE: SDL) is the global innovator in language translation technology, services and content management. For more than 20 years, SDL has transformed business results by enabling nuanced digital experiences with customers across the globe so they can create personalized connections anywhere and on any device. Are you in the know? Find out more at SDL.com and follow us on Twitter, LinkedIn and Facebook.