NOW today announced the strategic disposition of Allegient Defense for a gross consideration up to $12.5 million. This sale aligns with NowVertical’s commitment to optimizing our core business strategy and integration.
Strategic Benefits for NowVertical:
Focusing on Core Assets: Allegient's specialized SETA work accounted for less than 5% of its revenue from AI/ML and data solutions. This sale allows Allegient to thrive in its niche while we focus on our "One Business, One Brand" strategy.
Enhanced EBITDA and Margins: Allegient's cost-plus-fixed-fee structure provided consistent but limited margins. Now, we can concentrate on scalable and optimized operations, achieving higher margins across our core business.
Financial Flexibility: The $7.5 million in cash received at closing, along with additional payments, provides significant financial flexibility. The proceeds will help reduce overall debt significantly clear acquisition liabilities, and invest in business growth.
Debt Reduction: This transaction clears $3.8 million of debt from our balance sheet, significantly reducing our debt liabilities.
Supporting Growth: The sale enables strategic investments in our integrated business, supporting our growth plans and enhancing financial health.
Following this disposition, we will continue serving government clients in North America, UK, EMEA, and LATAM markets, ensuring consistent delivery of our data and AI solutions.
Read the full release at: https://lnkd.in/gK72eVPj
For more detailed insights about the disposition, watch a video prepared by Sandeep Mendiratta, available at: bit.ly/NOWDealInsights
For further details about NowVertical Group Inc.,
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Product Manager
4moShareholders would love to understand what makes this significant enough to warrant its own PR. Based on previous revenue guidance we should be having contracts like this coming in every 3-5 days. Alarming.