Ubisense Japan update

RNS Number : 7966G

Ubisense Group PLC

06 March 2018

 

6 March 2018

Ubisense Group plc

("Ubisense", the "Company" or the "Group")

Ubisense Japan update

Ubisense (LON:UBI), a market leader in enterprise location intelligence solutions, today announces that it has entered into agreements for the re-organisation of its business in Japan, including the sale of its Japanese third party geospatial services business.

Pursuant to the transaction, effective on 30 March 2018, it will carve-out the Japanese geospatial services business (the "Services Business") into a separate entity, which it has agreed to sell to a subsidiary of FinTech Global Incorporated of Japan for a gross consideration of JPY 100m (approximately £0.7m).

Alongside this transaction, Ubisense has agreed, subject to contract completion, to acquire the 23% minority interest in its Japanese operating company. The acquisition of this minority interest will give the group 100% ownership of its remaining Japanese operations.

These transactions are consistent with Ubisense's strategy of refocussing the Group on growing revenues from its own IP whilst managing the reduction in third party geospatial services revenues. The sale will allow the Services Business to grow under new ownership, whilst mitigating the Group's potential exposure to restructuring costs and allows Ubisense to focus on accelerating revenue growth from its own products business under its newly hired manager in Japan.

The net proceeds raised from the sale will be used to finance the purchase of the minority interest and to grow Ubisense's remaining business in the region.

Details on the Services Business being sold

The Services Business that has been sold is focused on supporting customers in the water industry using GE Smallworld products. It represented approximately 13% (£3.4m) of revenue in 2016, the most recent financial year that the Group has reported, and contributed approximately £0.5m of profit before impairment charges related to the original acquisition. Given the declining revenues and upcoming contract renewals, the Services Business was expected to make only a minimal contribution to Ubisense's group results in 2018.

The carve-out and disposal transaction includes the transfer of the customer relationships, the Geoplan brand name, fixed assets including certain market specific products, stock and 13 employees plus temporary personnel dedicated to that part of the business.

Richard Petti, CEO of Ubisense, said "This is another important step for us towards generating more own IP revenues whilst transitioning away from third party services revenues. It represents a good solution for the Services Business in Japan and allows our remaining Japanese business to focus on accelerating revenue growth from Ubisense's own products."

For further information contact:

Ubisense Group plc                                                                                        [phone]

Richard Petti

Tim Gingell

Numis Securities Limited                                                                             [phone]

Jamie Lillywhite (Corporate Finance)

Toby Adcock (Corporate Broking)

Tulcan Communications LLP                                                                       [phone]

James Macey White

About Ubisense

Ubisense (AIM: UBI), is a global leader in Enterprise Location Intelligence Solutions, proven to drive quality, reduce costs, manage complexity and increase productivity for its customers across the world. Central to its offering are two powerful software platforms that can take data from any source to provide visibility of customers' operations. Offering in-depth knowledge of the sectors in which it operates across the world, Ubisense has long standing relationships with many customers across target markets including automotive, aerospace, logistics, communications and utilities. Founded in 2002, Ubisense is headquartered in Cambridge, England, with operations in North America, Germany, France and Japan.  www.ubisense.net

 

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