Sale of subsidiary Improves BluePhoenix’s Balance Sheet and continues to focus company on Legacy Modernization.
Herzelia, Israel, June 11th, 2012 –BluePhoenix Solutions (NASDAQ: BPHX), the leading provider of legacy IT modernization solutions, today announced that it has entered into an agreement for the sale of its subsidiary BluePhoenix Knowledge Management Systems.
BluePhoenix will use the proceeds of the sale to continue to pay down the debt of the company leaving less than $0.6 million dollars in total outstanding loans to the banks. The structure of the deal includes cash and a combination of future professional services and consulting fees.
This sale is part of the strategic plan of the company to focus on the Legacy Modernization business. “We are going back to our core business of converting legacy systems to modern platforms where we have industry leading technology and world class experts” says Matt Bell, President of BluePhoenix.
The closing is subject to certain terms and conditions specified in the agreement.
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