Ricardo plc has completed the sale of its Software business to FOG Software Group, a division of Constellation Software Inc (CSI). The disposal forms part of Ricardo’s sharpened strategy to optimise its portfolio as it repositions itself for long-term and sustainable growth in environmental and energy-transition solutions. The proceeds will be reinvested into opportunities that offer attractive growth, whilst allowing the Ricardo Software business to grow under different ownership. Ricardo Software’s management will transfer with the business and lead the ongoing business within FOG’s STEM portfolio. The maximum cash consideration receivable is US$20.5 mln (£16.8 mln) on completion and this may increase by a further US$3.0 mln (£2.4 mln) based on Ricardo Software achieving certain revenue targets in the 12-month period post-completion. In the year ended 30 June 2021, Ricardo Software generated revenue of £10.3 mln and underlying operating profit of £2.3 mln (unaudited) on a like for like basis, after adjusting for the impact of intercompany transactions with the rest of the Ricardo Group.
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