Regenersis (now re-named Blancco Technology): disposal of Aftermarket assets
On 5 February 2016 Regenersis announced the conditional sale of its repair services business to CTDI Repair Services for a cash consideration of €103.5m (£81.8m). This move was designed to create a highly specialised technology business, focused on the fast moving data erasure market. Crucially the remaining assets have a market leading position, based upon technological advantages. As a consequence, Blancco delivers strong sales growth, with the trend accelerating. This partly reflects the expansion of the product offering, for example, increasing sales of live environment erasure services. This involves a move into cloud erasure data, where the pricing is determined by the volume of data erased (e.g. per gigabyte) rather than a price per click. This is helping the average order size to trend higher.
The disposal of the Aftermarket assets represented an opportunity to realise substantial cash proceeds, unlock the significant value which had been created by the turnaround of the legacy Regenersis business and move closer to becoming a pure software business with increased focus and appeal to its stakeholders.
Panmure Gordon Role: Panmure Gordon acted as joint broker to the Company