CSG to sell software IP for $9.75m
The education subsidiary of IT services company CSG has announced a software licensing deal which, if approved, would grant education software specialist Entellect Solutions international rights to its education software for $9.75 million.
Entellect Solutions, according to its website, provides web-based student administration and curriculum management software to schools. The pending transaction would allow the company to sell the software internationally, except in New Zealand and Australia.
In return for the licence, $9.75 million of share capital in Entellect Solutions would be issued to CSG on settlement of the transaction, according to a statement CSG released on the Australian Stock Exchange yesterday. All components of the transaction are subject to Entellect Solutions' shareholder approval.
As a part of the transaction, four new directors would be appointed to its five-member board at Entellect, according to a statement from the company.
CSG CEO Denis Mackenzie believed that the deal was a "great transaction" for CSG shareholders, as it would give them "a stake in a business which should be able to fully exploit the IP that CSG has developed, while not distracting CSG's Australian operations from their core focus".