Echo IQ (ASX:EIQ) sells subsidiary to software execs

• Echo IQ (EIQ) is selling its subsidiary, Prometheus Information, for $600,000
• The company entered a sale agreement with software executives Paul and David Smulders to sell the company
• The sale allows Echo IQ to focus its priorities on cardiac risk detection while ensuring that current Prometheus clients have ongoing access technical and commercial support
• Echo IQ expects the transaction will be finalised on July 1
• Company shares have been trading down 6.90 per cent at 13.5 cents

Echo IQ (EIQ) has entered a sale agreement with experienced software executives to sell its wholly-owned subsidiary, Prometheus Information.

The company will sell its subsidiary to Paul and David Smulders for $600,000. The consideration includes a $420,000 cash payment and receivables to the value of $180,000.

Prometheus Information provides business intelligence and analysis solutions to health insurance funds in Australia. Echo IQ acquired Prometheus in 2019 and credits a significant portion of its software licence and consulting revenue over the 2020 and 2021 financial years to the subsidiary.

However, Echo IQ believes the sale will allow it to focus on its priorities while still ensuring current Prometheus clients continue to have ongoing access to technical and commercial support.

“With Echo IQ increasingly focused on building and deploying its solutions in cardiac risk detection, the sale of Prometheus to two highly experienced business leaders in the software and technology sector bodes well for existing clients,” EIQ Executive Chair Andrew Grover said.

“Paul and David Smulders have significant experience in building and deploying technology solutions using insights in data and analytics across sectors, including government, education, financial services, healthcare and more,” Mr Grover added.

Echo IQ expects the transaction will be completed by July 1, 2022.

Company shares were down 6.90 per cent to trade at 13.5 cents at 3:41 pm AEST.