HMS Networks AB Announces Strategic Divestment from MB Connect Line
HMS Networks AB Takes Strategic Step in Divesting MB Connect Line
HMS Industrial Networks GmbH, a fully owned subsidiary of HMS Networks AB (publ), has made a significant business decision by entering into a binding agreement to sell all shares of Red Lion Europe GmbH, based in Dinkelsbühl, Germany. This divestment brings in a cash consideration of EUR 5 million, allowing the company to focus on its core strengths while ensuring that the current management team will continue operations effectively.
Understanding the Value of Red Lion Europe GmbH
Red Lion Controls Europe GmbH is known for its secure remote access and industrial IoT security products, prominently marketed under the MB Connect Line brand. The decision to divest this part of the business is primarily aimed at consolidating HMS’s global offerings of remote access, remote data management, and remote monitoring solutions under the well-regarded Ewon brand. This strategic move indicates a focused shift towards a streamlined operational model that can better serve evolving market demands.
Current Business Overview
Currently, the Red Lion business employs around 30 people and recorded net sales reaching EUR 5 million for the twelve-month period concluding on September 30, 2024. This performance underscores the company's contributions to HMS during their period of ownership.
Leadership's Perspective
Staffan Dahlström, the CEO of HMS, expressed appreciation for the team's efforts at Red Lion Controls Europe GmbH, stating, “We are thankful for the contribution made by the team at Red Lion Controls Europe GmbH during our short period of ownership and wish them all the best for the future.” This statement reflects the company's commitment to acknowledge the hard work and dedication of its employees even amidst organizational changes.
Financial Implications and Future Outlook
The anticipated closing of the transaction is expected within a two-month timeframe. Notably, this divestment is projected to have an insignificant impact on HMS’s earnings per share, suggesting that the company is well-positioned to absorb this change without substantial fluctuations in its financial standings.
HMS Networks AB: A Leaders in Industrial ICT
HMS Networks AB (publ) is recognized as a market leader in Industrial Information and Communication Technology (Industrial ICT). With over 1,200 dedicated employees, the company boasts robust sales and support capabilities through more than 20 sales offices worldwide, supported by a broad network of distributors and partners. In the previous financial year, HMS reported impressive sales totaling SEK 3,025 million and is publicly listed on the NASDAQ OMX in Stockholm, classified within the Large Cap segment and Telecommunications sector.
Contact Information
For more information, please reach out to:
Staffan Dahlström, CEO HMS, +46 (0)35 17 29 01
Joakim Nideborn, CFO HMS, +46 (0)35 710 6983
Frequently Asked Questions
What led to the divestment of MB Connect Line?
The divestment was executed to streamline HMS’s global offerings of remote access and monitoring solutions, consolidating under the Ewon brand.
How will this affect HMS Networks AB’s operations?
The divestment is expected to have a minimal impact on HMS’s overall earnings, allowing the company to focus on its core business strengths.
What is the cash consideration for the divestment?
HMS Networks AB will receive EUR 5 million in cash for the transaction involving Red Lion Europe GmbH.
What does Red Lion Controls Europe GmbH specialize in?
Red Lion specializes in secure remote access and industrial IoT products, particularly under the MB Connect Line brand.
Who can I contact for more information about HMS Networks AB?
You can contact Staffan Dahlström, CEO, or Joakim Nideborn, CFO, using the provided contact numbers for further inquiries.
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