Corporate: Salmat sells MicroSourcing biz for $100m

Marketing services provider Salmat (ASX:SLM) is continuing its rapid selloff of businesses, this time striking a deal to offload its MicroSourcing (Managed Services) business for $100m.

The deal comes a month after the $156m company revealed it was getting rid of its letterbox and e-catalogue distribution business, Reach Media NZ, for $25m.

Salmat will now sell its MicroSourcing (Managed Services) business to Probe BPO Holdings by way of a share sale.

CEO Rebecca Lowde said Salmat believes the sale represents the best option for all stakeholders.

“New capital partners should enable MicroSourcing to invest in additional growth and the completion of this transaction will return funds to Salmat,” she said.

The company had been fielding “a number of enquiries and had significant interest in the MicroSourcing operation for some time”.

“MicroSourcing has been a strong performer for Salmat since we acquired the first 50 per cent of the business in December 2013, achieving revenue and earnings growth year on year,” Lowde said.

Salmat expects the deal to be completed in February 2020.

The company says it plans to review all options to return value to shareholders once the deal is complete.

Shares gained over 6 per cent this morning.

In other ASX corporate news today:

Wastewater tech company Fluence Corporation (ASX:FLC) has received its first bulk follow-on Aspiral order, worth more than US$3m, from Aerospace Kaitian Environmental Technology in China.

Under the deal, Fluence will supply 15 of Aerospace Kaitian Environmental Technology’s wastewater treatment plants with 27 Aspiral L3 units and 18 Aspiral L4 units. Shipments are expected to begin immediately and will continue in early 2020.

US-based Visioneering Technologies (ASX:VTI) has raised $3m from sophisticated and professional investors. The company also revealed Fred Schwarzer had stepped down from his role as chairman.