Securicor, which issued a profits warning last week, disposed of its last non-core division yesterday to focus on its security business.
The company sold Securicor Information Services (SIS), an IT consultancy which works primarily for the public sector, especially the police and the courts, for up to £30.3m. There will also be a £10m future tax relief benefit for Securicor.
The loss-making business was bought by management, backed by Kleinwort Capital.
SIS provides services such as data management and is developing a single radio communications service that will link up all the emergency services.
Nick Buckles, Securicor's chief executive said: "It was clear that there were few customer synergies between SIS and our other businesses. SIS was the last remaining communications business in the group and its sale completes our programme of divesting of non-core businesses and our concentration on our core global security services."
Securicor has said that security is the right business for it to concentrate on and it aims to become a top three global player. Last week, however, the company reiterated the problems in this market, warning that the second half of its financial year would be hit by difficult trading conditions.
The group, which transports money, processes cash and provides security guards, said clients in Britain and continental Europe were cutting back on services or delaying purchases.
SIS, which is based in Chippenham and employs 500 people, will be renamed Vivista. Last year, the business had revenues of £48.3m and made a loss, before exceptional items, of £6.5m.
Steven Clarke of Kleinwort Capital said: "Vivista has a very experienced management team and a growth plan supported by key Government initiatives."Reuse content