The Company decided to strategically divest the business lines Demand Generation and Alphabet Adwords for Channel. The solutions, including IP, customer contracts and staff were sold for a consideration of € 6 million. The basis for this decision was the desire to free up resources to invest in our focus on 100% digitization of documents with EDI and e-Invoicing solutions. Financial close of the transaction was postponed twice due to the worldwide COVID-19 measures taken and associating insecurities affecting business outlooks worldwide. The transaction financially closed in August 2020.
TIE Kinetix closed its fiscal year 2020 (period October 1, 2019 – September 30, 2020) with strong operational performance. In addition to a strong operational EBITDA of € 2.126k, or 12% (2019: €319k or 2%), the company recorded a gain on the divestiture of € 5.889k. Total net result for 2020 amount to € 6.475k (2019: loss of € 1.315k).
The company will be using the proceeds to further invest in its focus on 100% digitization of documents with EDI and e-Invoicing solutions in its current markets of operation.
Further information will be provided in the Full Year press release scheduled from November 17, 2020.