Time to focus on erasure potential
The €103.5m (£78m) price for the Repair Services business is more than 10% ahead of the estimate in our sum of the parts. We estimate that the return of £50m cash to investors could leave Blancco well-funded to drive growth of the data erasure business with net cash of approximately £10m. The disposal of the Digital Care business, the remaining part of the Aftermarket Services division placed under review in September 2015, should provide a relatively small but welcome further fillip to finances. The value of the legacy businesses is now clear and investor attention will be focused solely on the exciting opportunity for Blancco Technology Group, as it is to be renamed, as a leader in data erasure.
Deal shows the value in legacy businesses
Regenersis Plc (L:RGS) has announced that it has reached agreement with Communications Test Design Inc, a private US company, for the sale of the Repair Services business for €103.5m (£78) in cash. The completion is expected to occur in the second quarter of CY16. Management intends to return £50m of capital to investors via a tender offer following the completion. The nascent mobile phone insurance service, Digital Care, remains within the group for now, with management still in the process of selling it to other parties.
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