IT Staffing Report: Nov. 2, 2017

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Volt sells VMC for $66 million, now focused on staffing

Volt Information Sciences Inc. (NYSE MKT: VISI) completed the sale of its quality assurance testing business, known as VMC, to Keywords International Limited, a technical services provider to the global video games industry. The New York-based IT and engineering staffing and MSP provider said it will now focus on moving forward as a pure-play staffing company.

Under the terms of the stock purchase agreement, Volt was to receive $66.4 million in cash at closing.

VMC was a part of Volt’s technology outsourcing services and solutions segment and represented approximately 5% of Volt’s global revenues. It provides production development, QA testing and customer support to companies primarily in the video gaming and mobile industries.

“This transaction further enhances our balance sheet liquidity and financial flexibility and allowed us to utilize some of our significant tax loss carryforwards,” Volt President and CEO Michael Dean said. “With this divestiture, Volt is now a more focused, pure-play staffing company.”

The sale does 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.