Access Intelligence disposes of AITrackRecord in management buyout

4th Jul 2016 12:46

(ShareCast News) - Risk management software supplier Access Intelligence announced on Monday that it has agreed terms to dispose of its subsidiary AITrackRecord to TrackRecord Holdings, a newly-formed company founded by AITrackRecord's current CEO David McNair Scott.The AIM-traded company said AITrackRecord provides a solution for training, competence and compliance management, designed specifically for the highly-regulated UK financial services industry.Under the agreement, Access Intelligence will receive 20% of the share capital of TrackRecord Holdings and a deferred cash payment of £0.1m, payable when a similar amount is received by AITrackRecord from Her Majesty's Revenue and Customs as a research and development tax credit for business in the pre-acquisition period.Joanna Arnold will also be joining the board of TrackRecord as a non-executive director and the group's representative, Access Intelligence confirmed."I am delighted that we have been able to secure a significant investment into TrackRecord via this new venture in return for reducing ourselves to a minority holding of 20%," said Arnold, who is CEO of Access Intelligence."We believe that with the new money coming into TrackRecord, the business now has the capital to expand and we are pleased to be part of the process."TrackRecord recently received £2.1m in cash in return for 80% equity, which values Access Intelligence's 20% stake at £0.5m.For the year to 30 November, AITrackRecord contributed revenue to the group of £0.7m, an EBITDA loss of £0.4m and a loss before tax of £2.4m.The total value of net liabilities being disposed of as at 30 November was £1.6m, Access Intelligence confirmed."I am excited to be taking on the AITrackRecord business in partnership with Access Intelligence," said McNair Scott."We are well positioned to take advantage of the burgeoning market opportunity and have a unique capability to help our customers through this period of change driven by the UK's regulatory mandate."