Proxama has today announced the sale of its Digital Payments division for up to £2m, less working capital and fees. The proceeds will be used to provide working capital to the mobile location data intelligence division, which becomes the exclusive focus of the group. In light of this, management is proposing to rename the group Location Sciences, subject to shareholder approval. Mark Slade, currently MD of this division, has replaced John Kennedy as CEO.
Proxama has announced the sale of its Digital Payment division to LHH2 APS, the holding company for global payments software company, Cryptomathic, for up to £2m less working capital of approximately £300k and fees. This comprises £1m cash on completion and a further £1m over the course of the next 18 months subject to the completion of certain conditions relating to the fulfilment of existing contracts. While the strategic review of this division, which was completed in May this year, did not result in a sale at the time, given the group’s strategy to focus growth investment on the location data division, its ultimate divestment is a logical outcome.
Following the sale, Proxama is focused exclusively on its Mobile Location Data and Intelligence division, where management sees an opportunity to rapidly scale. The proposed name change to Location Sciences reflects the new group structure. As with the £3.1m raised in July, the proceeds will be invested in engineering resources to improve platform and data science capabilities, as well as continuing to widen the group’s audience reach, targeting a five million cumulative audience and five billion data points by the year end. Given the change in the group structure, John Kennedy has stepped down as CEO and from the board. He has been replaced by Mark Slade, the current managing director of Location Sciences.
Proxama offers investors the opportunity to invest in an early-stage company in the large and dynamic addressable market for location data in the UK. The group is in an investment phase and is loss-making. However, it has a strong balance sheet and the sale of the Digital Payments division enables the group to dedicate its resources exclusively to accelerate the pace of platform development in Location Sciences, in order to offer a full suite of location data products early in 2018. We believe the news on this front, as well as additional audience and data partnerships, are the key developments for assessing progress.