Novation Companies Sells StreetLinks for $60 Million
16 Abril 2014 - 5:30PM
Marketwired
Novation Companies Sells StreetLinks for $60 Million
Earn-Out for Additional Payment of Up to $12 million
KANSAS CITY, MO--(Marketwired - Apr 16, 2014) - Novation
Companies, Inc. (OTCQB: NOVC) today announced that its subsidiary,
StreetLinks, LLC, has been sold to Assurant, Inc. for $60 million
in cash, plus a potential earn-out payment of up to $12 million
post-closing based on StreetLinks future performance. Novation
owned approximately 88% of StreetLinks and receives a corresponding
share of the sales proceeds. The sale was unanimously approved by
Novation's board of directors.
StreetLinks provides banks and mortgage lenders with full
service appraisal management services and appraisal management
software. Novation will utilize the proceeds from the sale to
increase its investment in its cloud-based communications software
subsidiary, CorvisaCloud, LLC, and for general corporate
purposes.
"The sale of StreetLinks is a significant strategic shift for
Novation allowing the company to focus more resources on the
business of CorvisaCloud and its cloud-based communications
software solutions. Novation's strategy of investing in a variety
of early-stage operating businesses was designed to find a business
that would generate sufficient earnings for Novation to rebuild
shareholder value," said Lance Anderson, CEO of Novation.
Mr. Anderson added, "StreetLinks has been a great investment for
us. We believe that with Assurant as its new owner, StreetLinks is
better positioned to take advantage of the opportunities that may
present themselves in the future. For Novation, we believe it is
the right time to take our proceeds from the sale of StreetLinks
and invest in what we believe to be the business with the greatest
long term potential to grow significant value for our shareholders.
We see enormous opportunity in the cloud communications market and
believe investing additional capital in CorvisaCloud will not only
fuel future growth for the business, but enhance long-term value
for Novation shareholders."
Novation plans to discuss this transaction and the new direction
for the business on April 30, 2014. On that date, W. Lance
Anderson, Chairman of the Board of Directors and Chief Executive
Officer, plans to host a conference call at 11 a.m. (Central Time).
The general public is invited to listen to the call by dialing
(800) 750-5845, or
via a live audio webcast at
https://cc.callinfo.com/r/1grlovfa6l2zo&eom. A replay will be
available within 24 hours after the call at
http://novationcompanies.com/investors/financials.
Novation was advised by Keefe, Bruyette & Woods, Inc.
About Novation Companies, Inc.
Novation Companies Inc. owns and operates early-stage businesses
in the technology-enabled services industry. Novation currently
owns, wholly or in the majority, interests in Advent Financial
Services LLC and CorvisaCloud LLC. Novation trades on the OTC
Markets' Group inter-dealer quotation service as an OTCQB security
under the symbol NOVC. For more information, please visit
www.novationcompanies.com or contact Matt Kaltenrieder,
Investor Relations, 816.237.7508 or
ir@novationcompanies.com.
Matt Kaltenrieder Investor Relations 816.237.7508 Email
Contact
Novation Companies (CE) (USOTC:NOVC)
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