Altisource announces the finalization of the sale of its pointillist subsidiary
Altisource received $ 102.2 million in cash at closing and expects to receive $ 3.5 million in cash after the first anniversary of closing
LUXEMBOURG, 01 Dec. 2021 (GLOBE NEWSWIRE) – Altisource Portfolio Solutions SA (âAltisourceâ or the âCompanyâ) (NASDAQ: ASPS) today announced that the shareholders of Pointillist, Inc. (âPointillistâ), a majority owned subsidiary of Altisource, has completed the previously announced transaction to sell all interests in Pointillist to Genesys Cloud Services, Inc. (âGenesysâ).
The Company received $ 102.2 million in cash at closing and expects to receive an additional $ 3.5 million in cash from an indemnification escrow account after the first anniversary of closing, assuming no claims. compensation is sought, and $ 0.3 million in cash from a working capital escrow account, assuming no working capital adjustment exceeds established thresholds. Altisource estimates that it will recognize a pre-tax and after-tax gain of approximately $ 107 million on the sale before any potential reduction in goodwill.
âWe are delighted to complete the sale of Pointillist to Genesys. This strengthens Altisource’s balance sheet by adding $ 102.2 million in cash at close and aligns Pointillist with a strategic partner to help accelerate its growth. I would like to thank the Pointillist team and wish them the best in the next phase of Pointillist’s evolution, âsaid President and CEO William B. Shepro.
Pointillist was an unrestricted subsidiary under the company’s senior secured term loan. Altisource intends to use approximately $ 20 million of the sale proceeds to repay the outstanding balance of the Company’s revolving credit facility with STS Master Fund, Ltd., which credit facility remains available to Altisource, and intends to use the remaining proceeds for general corporate purposes.
This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical facts, including statements that relate, among other things, to future events or our future financial performance or conditions. These statements can be identified by words such as “anticipate”, “intend”, “expect”, “may”, “could”, “should”, “should”, “plan”, ” estimate â,â seek â,â âbelieveâ, âpotentialâ or âcontinueâ or the negative of these terms and of comparable terminology. Such statements are based on expectations about the future and are not statements of historical fact. In addition, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties which could cause actual results to differ materially. Important factors that could cause actual results to differ materially from those suggested by forward-looking statements include, but are not limited to, the risks associated with the transaction with Genesys, including claims related to representations and warranties. fundamental and against amounts withheld in the escrow account; the risks discussed in Section 1A of Part I âRisk Factorsâ in our Form 10-K filed with the Securities and Exchange Commission, as they may be updated from time to time in our Forms 10-Q. We caution you not to place undue reliance on these forward-looking statements, which reflect our views only as of the date of this report. We have no obligation (and expressly disclaim any obligation) to update or modify any forward-looking statements contained herein to reflect any change in our expectations in this regard or any change in the events, conditions or circumstances on which a such statement is based. Risks and uncertainties to which forward-looking statements are subject include, but are not limited to, risks related to the COVID-19 pandemic, customer concentration, the timing of the expected increase in default-related referrals after the expiration of foreclosure and eviction moratoria. and forbearance programs, when these moratoriums and programs expire, and any other delays caused by government, investor or service actions, the use and success of our products and services, our ability retain existing customers and attract new customers and the potential for expansion or changes in our customer relationships, technological disruption, our compliance with applicable data requirements, our use of third party suppliers and contractors, our ability to effectively manage potential conflicts of interest, macroeconomic and industry-specific conditions, our ability to effectively manage our regulatory and contractual obligations, the adequacy of our financial resources, including our sources of liquidity and our ability to repay loans and comply with our Credit Agreement, including financial and other covenants i are contained therein, as well as Altisource’s ability to retain key officers or employees, the behavior of customers, suppliers and / or competitors, technological developments, government regulations, taxes and policies. The financial projections and scenarios contained in this press release are expressly qualified as forward-looking statements and, as with other forward-looking statements, should not be relied on unduly.
Altisource Portfolio Solutions SA is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps meet the demands of the ever-changing markets we serve. Additional information is available at www.Altisource.com.
Pointillist’s award-winning customer journey management platform enables organizations to deliver seamless, connected and personalized experiences. By measuring, monitoring and orchestrating customer journeys, Pointillist solutions optimize CX and improve digital containment, contact center performance, escalation management and more. Some of the world’s largest companies use Pointillist to analyze billions of daily interactions with users and rely on the platform to improve customer experience and business results. Pointillist is headquartered in Boston, Massachusetts and is located on the Web at www.pointilliste.com.
FOR MORE INFORMATION, CONTACT:
Michelle D. Esterman
T: (770) 612-7007
E: [email protected]