Parity Group plc (PTY:LSE) plans to sell its primary operating subsidiary, Parity Professionals Ltd., to Network Ventures Ltd. The proposed deal calls for payment of up to £3 million for 100% of the subsidiary. In addition, Parity Group plans to change its name to Partway Group plc.

The deal was announced by the London-based firm in a regulatory filing on 21 November

Parity Professionals, which provides IT recruitment, is one of the company’s two principal subsidiaries, the other being Parity Consulting Services Ltd.

Under the proposed terms, £2 million of the purchase price will be payable immediately. A further £1 million will be retained by the purchaser for adjustments based primarily on the working capital positions of Parity Professionals at completion.

The deal represents a fundamental change in the business of the company, and the sale must receive shareholder approval. Proceeds from the deal will go toward removing the pension liability from the company’s balance sheet and identifying a potential acquisition.

Parity Group plans to change its name to Partway once the deal is complete.

Shareholders will vote on the sale during the company’s general meeting on 7 December.

Parity Group on 29 September had announced first-half revenue was down 16.2% year over year to £17.6 million.

Share price and market cap

Shares in Parity Group closed at £1.70 on 21 November in London; they were 13.33% above their 52-week low. The company had a market cap of £1.86 million.