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Volt to sell quality assurance testing business for $66 million

October 24, 2017

Volt Information Sciences Inc. (NYSE MKT: VISI) agreed to sell its quality assurance testing business, known as VMC, to Keywords International Limited, a technical services provider to the global video games industry, to focus on moving forward as a pure-play staffing company.

VMC is a part of Volt’s technology outsourcing services and solutions segment. It provides production development, QA testing and customer support to companies primarily in the video gaming and mobile industries.

Under the terms of the stock purchase agreement, Volt will receive $66.4 million in cash at closing, subject to customary working capital adjustments. The sale is conditioned upon Keywords’ satisfaction of a financing contingency to fund the purchase price.

The sale will not include the call center services unit of the company’s technology outsourcing services and solutions segment, which Volt will continue to own and operate.

“The disposition of these non-core assets, which represent approximately 5% of Volt’s global revenue, will allow Volt to become a pure-play staffing company,” said Volt President and CEO Michael Dean. “The anticipated cash proceeds from the sale will significantly strengthen Volt’s balance sheet and notably bolster our liquidity position. Importantly, this transaction will help streamline our operational focus within our core staffing business, where we are best positioned to create long-term shareholder value.”

Closing of the sale is anticipated shortly. Once closed, Volt’s current financing agreement with PNC Bank will require a $25 million paydown of its outstanding debt.