Exela Technologies Completes $12.3M Divestment of Records Storage business as Part of Strategic Plan to Sell Non-Core Assets
July 23 2020 - 4:05PM
Exela Technologies, Inc. (“Exela”) (NASDAQ: XELA) today announced
that it has completed the sale of its physical records storage and
logistics business for a purchase price of $12.3 million. The
assets involved in the business generated approximately $1 million
of EBITDA in 2019.
This transaction is another milestone in Exela’s initiative to
sell non-strategic business assets with total proceeds between $150
million and $200 million over two years, announced in November
2019. With the completion of this sale, Exela has now raised over
$50 million for investment in the business.
“We are pleased with the progress made in executing the
strategic initiative despite an overall challenging market
environment,” said Suresh Yannamani, President, Exela. “We will
continue focusing on our core business, new technology offerings,
and focus on better serving our customers during these
unprecedented times.”
About Exela Technologies
Exela is a business process automation (BPA) leader, leveraging
a global footprint and proprietary technology to provide digital
transformation solutions enhancing quality, productivity, and
end-user experience. With decades of experience operating
mission-critical processes, Exela serves a growing roster of more
than 4,000 customers throughout 50 countries, including over 60% of
the Fortune® 100. With foundational technologies spanning
information management, workflow automation, and integrated
communications, Exela’s software and services include
multi-industry department solution suites addressing finance and
accounting, human capital management, and legal management, as well
as industry-specific solutions for banking, healthcare, insurance,
and public sectors. Through cloud-enabled platforms, built on a
configurable stack of automation modules, and over 22,000 employees
operating in 23 countries, Exela rapidly deploys integrated
technology and operations as an end-to-end digital journey
partner.
Forward-Looking Statements: Certain statements
included in this press release are not historical facts but are
forward-looking statements for purposes of the safe harbor
provisions under The Private Securities Litigation Reform Act of
1995. Forward-looking statements generally are accompanied by words
such as “may”, “should”, “would”, “plan”, “intend”, “anticipate”,
“believe”, “estimate”, “predict”, “potential”, “seem”, “seek”,
“continue”, “future”, “will”, “expect”, “outlook” or other similar
words, phrases or expressions. These forward-looking statements
include statements regarding our industry, future events, the
estimated or anticipated future results and benefits of the
Business Combination, future opportunities for the combined
company, and other statements that are not historical facts. These
statements are based on the current expectations of Exela
management and are not predictions of actual performance. These
statements are subject to a number of risks and uncertainties,
including without limitation those discussed under the heading
“Risk Factors” in Exela’s most recently filed Annual Report on
Form-10-K filed with the Securities and Exchange Commission. In
addition, forward-looking statements provide Exela’s expectations,
plans or forecasts of future events and views as of the date of
this communication. Exela anticipates that subsequent events and
developments will cause Exela’s assessments to change. These
forward-looking statements should not be relied upon as
representing Exela’s assessments as of any date subsequent to the
date of this press release.
Find out more at www.exelatech.com.
Follow Exela on LinkedIn:
https://www.linkedin.com/company/exela-technologies/
Follow Exela on Twitter: https://twitter.com/exelatech
Media Contact: Kevin McLaughlin
E: kevin.mclaughlin@icrinc.com
T: 646-277-1234
Investor Contact: William Maina
E: IR@exelatech.com
T: 646-277-1236
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