Benzinga | Dec 1, 2021 10:41AM EST

Altisource Announces The Completion Of Sale Of Its Pointillist Subsidiary For $102.2M In Cash

Altisource Portfolio Solutions S.A. ("Altisource" or the "Company") (NASDAQ:ASPS) today announced that the shareholders of Pointillist, Inc. ("Pointillist"), a majority owned subsidiary of Altisource, closed on the previously announced transaction to sell all of the equity interests in Pointillist to Genesys Cloud Services, Inc. ("Genesys").

The Company received $102.2 million in cash at closing, and anticipates receiving an additional $3.5 million in cash from an indemnification escrow account following the one-year anniversary of closing, assuming no indemnification claims, and $0.3 million in cash from a working capital escrow account, assuming no working capital adjustments in excess of established thresholds. Altisource estimates it will recognize a pre-tax and after-tax gain of approximately $107 million from the sale before any potential reduction of goodwill.

"We are pleased to complete the sale of Pointillist to Genesys. This strengthens Altisource's balance sheet by adding $102.2 million of cash at closing and aligns Pointillist with a strategic partner to help accelerate its growth. I'd like to thank the Pointillist team and wish them the best in the next phase of Pointillist's evolution," said Chairman and Chief Executive Officer William B. Shepro.

Pointillist was an unrestricted subsidiary under the Company's Senior Secured Term Loan. Altisource intends to use approximately $20 million of the proceeds from the sale to repay the outstanding balance on the Company's revolving credit facility with STS Master Fund, Ltd., which credit facility remains available to Altisource, and intends to use the remaining proceeds from the sale for general corporate purposes.