On 11 February 2017, CIBER, Inc. (NYSE:CBR)’s deadline for either signing a deal or paying back Wells Fargo credit line would have been extinguished. But, before the deadline, the company has managed to find a taker for itself. CIBER, Inc. recently announced that it was selling off its business in Denmark and Germany to the German IT company, Allgeier SE, headquartered in Munich. Greenwood Village-based CIBER, Inc. has decided that the overseas operations shall be sold to this Munich-based IT services company.
A deal that had to be made
CIBER, Inc. had no other option except to sign the deal, given that it was desperately looking for ways to satiate its Wells Fargo credit line payment obligations. Wells Fargo wanted the company to prove that it had commitment towards deals, which would zero in by the end of this month and help it raise funds. The bank had asked the company for this, or to explore other ways that would enable it to repay the amount to bank.
Allgeier subsidiary is the taker for this business
In a bid to find a suitor, CIBER, Inc. started exploring options frantically, before finally settling down to Allgeier subsidiary Blitz 17-11. Now, the German and Danish businesses of CIBER, Inc. shall become those of Blitz 17-11, in a deal worth $8.8 million, which would be paid in three instalments.
The payment instalments shall be cleared three times- once at the sale closing and once each in March 2018 and March 2019. These payments are subject to performance criteria as well. Half of this amount shall now be paid for settling Wells Fargo credit line and the remaining half shall become CIBER, Inc.’s working capital.
In a statement, the President and CEO of company, Michael Boustridge said, “The sale of Ciber Germany and Ciber Denmark is consistent with our announced strategy to divest non-core assets.” He believes that Allgeier is a “terrific home” for its German and Danish employees as well as customers.