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© daniel schweinert dreamstime.com Electronics Production | December 14, 2012

Connect Group with additional profits for 2012

Connect Group NV announces additional profits of at least EUR 3.7 million for 2012 as a result of the 2009 sale of its Automation division.
Connect Group NV has announced that its 2012 results will be at least EUR 3.7 million higher as a result of the "earn-out" clause in the contract of sale concluded in late 2009 for its Automation division.

Alongside the fixed selling price of EUR 2 million, this contract also provided for an additional variable portion of the purchase price equal to 50 percent of the division's adjusted accumulated profits for the period 2010 to 2012.

Based on financial data provided by the purchaser to Connect Group NV, the additional payment will amount to at least EUR 3.7 million. With several elements still unclear, the final total could be even higher. Under the contract, final settlement and payment is due to take place in 2013, following announcement of the divested division's annual results. Connect Group NV intends to book the minimum amount in its 2012 results.

The purchaser is also due to pay the EUR 2 million base price to Connect Group NV at the end of 2013. These two items will thus boost the Connect Group's cash position by at least EUR 5.7 million by the end of 2013.

"We are very pleased that the divested Automation division has produced such good results over the last few years and that the Connect Group is receiving its share of the success." This additional payment of at least EUR 3.7 million will help greatly in reducing the Connect Group's debts in 2013, strengthening the group for the future.

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