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The company, formerly known as ITG Group, said it had entered into a conditional agreement to sell its voice and data business, which currently employs 160, for a total consideration of EUR12 million. According to Alphyra, the deal will see the firm receive an initial cash consideration of EUR8 million, payable on completion of the sale with the balance being satisfied by the issue of EUR4 million in loan notes. Alphyra's payphone business will not be part of the sale.
The company will sell its voice and data business to Calyx Computers Limited, owned by Maurice Healy, a director and co-founder of Alphyra. The completion of the deal is dependent on shareholder approval, in part due to the value of the agreement, but also because of Healy's role in the Alphyra.
It is thought that if the merger is approved Healy would leave the Alphyra group board to run the voice and data business.
A spokesperson for Alphyra explained that that company was selling the business as part of its restructuring plan announced earlier in the year. The business said it would now be able to focus on its core operations, the electronic transaction market, which is estimated to be worth EUR10.7 billion across Europe, generating total payments of EUR665.4 billion. Already the company operates electronic mobile phone top-up services and electronic card payment services in Ireland, the UK, France, Sweden and Germany.
Along with the announcement, the company released its results for the six-month period ending 31 October. Alphyra reported a loss per diluted share of EUR0.226 in the six-month period, compared to profit per share of EUR0.302 for the same time a year earlier.
The business said loss before interest, tax, depreciation and amortisation (EBITDA) was EUR0.1 million compared to a profit of EUR2.2 million in the same period in 2000. According to Alphyra, these losses came about primarily as a result of heavy investment in the two new markets of France and Germany. Loss before tax, goodwill and exceptional items was EUR4.2 million, compared to the EUR0.2 million figure that the company reported last year.
The firm's Electronic Transaction Group lost EUR4.3 million in the six month period, while the voice and data business made a small profit of EUR0.1 million during that time. The company also said that the Electronic Transactions Group reported a negative EBITDA of EUR1.8 million over all markets, but in the Irish market Alphyra reported positive EBITDA of EUR2.1 million, compared to a loss of EUR0.5 million last year. The UK market reached EBITDA breakeven, the company said.
The sale of the company's voice and data unit follows the firm's decision in August to announce a placing and open offer that was expected to see it issue eight million new shares and raise EUR36.2 million. The new shares were to be sold for EUR5 per share, which values the company at approximately EUR158 million. According to the company, the revenue from the open offer will be used on new investments and company acquisitions.
Additionally, in October, Alyphyra purchased the transaction services division of De La Rue for STG6 million. That deal saw Alphyra pay STG3 million in cash and STG3 million in stock for the British business, which facilitates pre-payments for goods and services including utility bills and the top-up of mobile phone credits. At the time Alphyra said the acquisition was in line with its strategy to consolidate its position in the UK market.
Worldwide Alphyra employs around 600, with 40 percent of its workforce located in Ireland. The company is on-line at http://www.alyphra.com
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