Northern Ireland energy group Viridian is to sell its IT subsidiary Sx3 to British IT group Northgate Information Solutions for £155m in cash.
Sx3 reported pre-tax profits of £6.4m for the year to the end of March 2004 and was expected to increase profits for the current year. Viridian set up Sx3 in 1997. The company operates mainly in the UK public sector.
Viridian will record a net profit of around £100m on the sale. It said it would make a one-off return of capital to shareholders following completion of the disposal, though the mechanism for this has yet to be decided. £25m of the proceeds will go towards cutting the group's pension deficit, while the rest will be used to reduce debt.
Viridian chief executive Patrick Haren said the sale reinforced its commitment to developing its energy businesses in Ireland.
Viridian shares were up 44 cent to €11.04 in Dublin this afternoon as the price it received for Sx3 was much higher than had been expected.
