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Veris (ASX:VRS) sells Aqura Technologies to Telstra (ASX:TLS) subsidiary

ASX News, Industrial
ASX:VRS      MCAP $21.89M
01 March 2022 03:00 (AEDT)
Veris (ASX:VRS) - Chair, Karl Paganin

Source: Veris Limited

Surveying services company Veris (VRS) has completed the sale of Aqura Technologies to a subsidiary of Telstra Corporation (TLS).

At the end of last month, Veris signed an agreement with the telco giant’s subsidiary, Telstra Purple to sell all of the shares in Aqura Technologies.

Veris Chairman Karl Paganin said the motivation behind selling Veris’ subsidiary was to provide the Aqura team with the opportunity to accelerate growth further by leveraging Telstra’s existing sales and customer channels.

The sale consideration represented an enterprise value of $30 million and was settled in cash following customary net debt, working capital adjustments and the payment of costs, including staff incentive payments.

Now that the sale has been completed, Veris has used some of the proceeds to pay down an outstanding bank debt with Commonwealth Bank.

Positively, Veris is now free of long-term debt and well capitalised with a strong balance sheet and net cash position of $18.3 million.

The company said it’s in a strong position to pursue growth plans for its subsidiary, Veris Australia which include the continued expansion of Veris Australia’s data-as-a-service strategy.

Veris ended Monday’s session 1.43 per cent in the red and closed at 6.9 cents.

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