Chyron has sold Pro-Bel, its automation and distribution business to a U.K.-based company for $15.6 million. The buyer, Oval Limited, is jointly owned by members of the Pro-Bel management team and LDC, the venture capital arm of Lloyds TSB Group. Net proceeds of the sale will come to about $12 million in cash after payment of Pro-Bel obligations and other transactional costs. Chyron's preliminary estimate of gain on the sale is approximately $2.5 million, to be recorded in Q4 '03.
Pro-Bel lost $1.6 million on sales of $20.3 million in 2002, according to Chyron.
Chyron CEO Michael Wellesley-Wesley said proceeds from the sale would go toward reducing debt, allowing the company to focus on its core TV graphics products.
On a separate note in its announcement of the Pro-Bel sale, Chyron said preliminary estimates for Q3 indicated that gross revenues would be down 14 percent from Q2. Graphics division gross revenues were preliminarily estimated to be approximately 25 percent lower, while Pro-Bel division gross revenues were preliminarily estimated to be about two percent lower compared to second quarter gross revenues. Preliminary estimates of results are subject to change upon completion of the quarterly review.
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