Troubled Internet security firm Baltimore Technologies has sold its Content Technologies unit for £20.5 million sterling to Clearswift Corporation.
Baltimore had bought Content for £690 million in September 2000. Analysts had expected the sale of Content, which provides e-mail screening software, to make between £20 and £50 million.
Clearswift is backed by Amadeus Capital Partners and provides policy-based e-mail security software.
Content was put up for sale last August as part of Baltimore's restructuring plan to weather the downturn in the technology sector. There had been concerns earlier this month that Baltimore was finding it difficult to find a buyer for the unit.
Commenting on today's sale, Baltimore Chief Executive Bijan Khezri said: 'Whilst it is a significant step towards strengthening our company for success in its core business, efforts to refocus the business, enhance the productivity of our operations and maximise its potential are far from complete.'
Baltimore said its commitment to developing its security technologies and software would give investors the best return in the long-term, but warned that it would delay the company becoming earnings positive by six to nine months.
The company said revenues in the three months to December 31, 2001 had been in line with that of the previous two quarters. In the three months to September 30, 2001, total revenues had been £15 million sterling, down from £20 million a year earlier.
