By Ketki Saxena
Investing.com -- Dye & Durham Ltd (TSX:DND) Ltd. has announced its intent to sell TM Group, its data software subsidiary, to international investment powerhouse AURELIUS in a deal worth approximately £50 million.
The agreement stipulates an upfront cash payment of around £50 million for the sale of the data software enterprise. Additionally, there is potential for further earn-out payments ranging between 2023 and 2026 that could elevate the total proceeds to close on an impressive sum of roughly £91 million.
The profits generated from this transaction will be strategically used by Dye and Durham to alleviate its current debt levels.
"Although TM Group was not crucially significant to our overarching business model, it remains a profitable establishment that is poised to create additional value under new stewardship," remarked Matthew Proud, CEO of Dye & Durham during Monday's press release announcement.
"Our future strategy includes seeking fresh M&A opportunities within the U.K. market as we strive towards transforming our business into the world’s leading legal technology entity," he further added.
This acquisition deal is slated for completion in August.