BluePhoenix Solutions (NASDAQ:BPHX), the leader in value-driven legacy modernization, today announced that it completed the sale of its AppBuilder business to Magic Software Enterprise Ltd. (NASDAQ:MGIC) for $17 Million. The amount paid to BluePhoenix at closing (after deduction of $3.5 Million net) was $9.5 Million. An amount of $4 Million is held in escrow accounts to secure certain obligations under the sale agreement.
Concurrently with completion of the sale of AppBuilder business, BluePhoenix entered into agreements with its bank lenders to revise the set of financial covenants to suit its current level of operations.
About BluePhoenix Solutions
BluePhoenix Solutions (NASDAQ:BPHX) is the leading provider of value-driven legacy IT modernization solutions. The BluePhoenix portfolio includes a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, rehosting, and renewal. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime.
BluePhoenix provides modernization solutions to companies from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. Among its prestigious customers are: Aflac, Capita Group, CareFirst, Citigroup, Danish Commerce and Companies Agency, Desjardins, Los Angeles County Employees Retirement Association, Rabobank, Rural Servicios Informaticos, SDC Udvikling, TEMENOS, Toyota, and Volvofinans. BluePhoenix has 11 offices in the USA, UK, Italy, Romania, Russia, Cyprus, and Israel.
Cautionary Statement Regarding Forward-Looking Statements
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