FTSE 250 technology firm Spirent Communications said it was selling off its systems division as it focuses on core markets.
The division, which trades as PG Drives Technology, is being sold to US engineering firm Curtiss-Wright Corporation for $64m in cash, with the deal expected to go through in October.
Spirent said net proceeds from the sale after tax and expenses would be around $61m and it planned to return the money to shareholders through a share buyback.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
PG is a designer and supplier of DC and AC controllers for specialist electric vehicle applications in the medical mobility and industrial markets.
In 2011, it reported revenues of $58m and profit before tax of $9m.
"This disposal demonstrates a further step forward in Spirent's strategy to focus the group's activities on the faster growing test and measurement market, allowing Spirent to concentrate on driving innovation and expanding the solutions portfolio of its core business," said Chief Executive Bill Burns.
-
Side hustle tax changes: HMRC reforms could save thousands from filing self-assessment tax returnsThe government plans to raise the tax-free threshold for trading income – here is how it could help your side hustle
-
Return to the office: is working from home coming to an end?More and more employers want their staff to return to the office. Is it a good idea?
