RedstoneConnect is flogging off its managed services and system integration divisions for £21.6 million.
The outfit said that it wants to focus solely on software development.
In a note to the London Stock Exchange, RedstoneConnect said it would offload two of its three divisions, leaving it with just its software unit.
Included in the sale is Commensus Limited, which RedstoneConnect acquired in 2016, and Comunica Holdings.
RedstoneConnect CEO Mark Braund said: “The proposed disposal of our systems integration and managed services divisions represents another exciting development in the evolution of our business.
“Since the acquisition of Connect IB in 2016, we have been developing our smart software solution capabilities with a particular focus on OneSpace, our occupancy management software solution.
“We firmly believe that the significant global demand for workspace management solutions, coupled with the market-leading suite of services already being deployed within our software division, creates an ideal base from which to accelerate our growth.”
RedstoneConnect’s financial results for the year ending 31 January 2018, showed total revenue was up 15 percent year on year to £47.57 million.
The sale of the MSP and SI divisions will see the firm’s revenue decline 89 percent, leaving it with the £5.3 million software unit.
The SI arm reported revenue of £24.21 million and gross profit of £3.7 8 million while the MSP division reported an income of £18 million and a gross profit of £5.14 million.
