Amsterdam, Netherlands-based IT services provider Getronics has reached an agreement to sell 33,500 shares of Class B Preferred Stock in DigitalNet to a US based investment fund, through which it expects to pocket cash proceeds of $27m with a book profit value of 5m euros ($5.7m). Other DigitalNet shareholders have the chance to match the offer over the next 45 days, but Getronics expects to close the sale of the shareholding on 28 October 2003.
Getronics previously sold a majority stake in its federal government business to Hendon, Virginia-based DigitalNet for 224m euros ($219.5m) in cash and shares, plus an additional 27m euros ($26.5m) depending on the operation achieving certain performance objectives over the subsequent 12 months.
Getronics’ net debt was reduced by 61% in the first half of 2003 to 125m euros ($141m), down from 319m euros ($360m) at the end of December 2002. This was driven by the sale of its payroll business for $315m and its stake in Norwegian IT services partner Ementor ASA for $12.9m.
DigitalNet indefinitely postponed its planned initial public offering on the New York Stock Exchange in May 2003, due to poor market conditions.
Source: ComputerWire
