LONDON, UK: TPXimpact Holdings PLC (AIM: TPX) has sold Questers Resourcing Limited and Questers Bulgaria EOOD to pwrteams OÜ, the outsourcing and team augmentation business owned by Nortal AS for cash consideration of £7.5m.
Questers is based in Sofia, Bulgaria and has around 300 employees who provide cross-border IT support and related services to the commercial sector. For the year ended 31 March 2023, Questers generated £13.1m of revenue and £1.3m of Adjusted EBITDA. Gross assets as at 31 March were £7.6m.
The Board has a clear strategy to focus the Company on its core strengths of Digital Transformation and Digital Experience and has concluded that Questers’ offering is no longer core to this strategy. The Board also believes that fresh ownership, under Nortal, will be better placed to take Questers to the next level of its development.
TPXimpact has disposed of the entirety of its equity interests in Questers for cash consideration of £7.5m. Of this amount, up to £5.0m will be used to repay borrowings, with the remainder used to fund investment and growth in our core capabilities. Management are therefore targeting net debt (excluding lease liabilities) to be in the range of £11m to £12m at 31 March 2024, compared with £17.9m at 30 June 2023.
The Group’s banking covenants require minimum cash liquidity levels on a monthly basis and minimum Adjusted EBITDA performance levels on a quarterly basis. The Group’s bankers have agreed to revise the Adjusted EBITDA levels in these requirements, to allow for the deconsolidation of Questers from the Group’s results.
Björn Conway, Chief Executive Officer at TPXimpact, said: “At our preliminary results in July 2023, we set out a three year plan to ensure we continue to drive efficiencies across the Group and capitalise on the sizeable market opportunity ahead. Today’s announcement firmly aligns with this strategic vision for TPXimpact by enabling us to concentrate our resources and energies around those prospects within the UK public sector and broader digital transformation market where there is considerable scope for further growth.
I would like to thank all our colleagues at Questers for the important work they have contributed to the Group over the past five years, and I am confident Nortal represents an excellent fit for the business going forward.”
Priit Almae, Chief Executive Officer at Nortal AS said: “The Questers acquisition strengthens our pwrteams business that is focused on building dedicated cross-border teams for our customers. The acquisition will add market presence in the US and UK and complement our strong organic double-digit growth over the last 5 years. I am glad to welcome the 300+ new colleagues into our team.”