Altisource will receive an estimated $ 104 million in cash and realize an estimated after-tax gain of $ 107 million from the transaction
LUXEMBOURG, 07 Oct 2021 (GLOBE NEWSWIRE) – Altisource Portfolio Solutions SA (“Altisource” or the “Company”) (NASDAQ: ASPS) today announced that the shareholders of Pointillist, Inc. (“Pointillist”), a majority owned subsidiary of Altisource, has entered into a definitive agreement to sell all of the interests in Pointillist to Genesys Cloud Services, Inc. (“Genesys”) for $ 150 million (the “Purchase Price”). The purchase price consists of an upfront payment of $ 145 million, subject to certain adjustments at closing, including a working capital adjustment, and an additional $ 5 million to be held in an escrow account to satisfy certain claims of Genesys which may arise on or before the first anniversary of the conclusion of the sale, the balance to be paid thereafter. On a fully diluted basis, Altisource owns approximately 69% of Pointillist’s capital. The Company estimates that it will receive approximately $ 100 million in cash at closing, subject to a working capital adjustment, and an additional $ 3.7 million in cash after the first anniversary of closing, assuming that ‘there is no claim for compensation. Altisource estimates that it will recognize a pre-tax and after-tax gain of approximately $ 107 million on the sale which is expected to close before the end of calendar year 2021.
The sale is subject to customary closing conditions, including receipt of regulatory consents.
Pointillist is an artificial intelligence-based customer journey management SaaS platform that connects the dots between customer experience and business outcomes, helping businesses improve retention and reduce costs. In 2019, Altisource created Pointillist as a separate legal entity and contributed to Pointillist® customer journey analytics company and $ 8.5 million.
“We are delighted to sign the definitive agreement to sell Pointillist to Genesys. We believe this transaction demonstrates that Altisource has a set of valuable businesses that may not be fully appreciated by the capital markets. Monetizing this compelling asset strengthens Altisource’s balance sheet by adding $ 100 million in cash at close and aligns Pointillist with a strategic partner to help accelerate its growth. I would like to thank the Pointillist team and wish them the best in the next phase of Pointillist’s evolution, ”said President and CEO William B. Shepro.
Ronald J. Rubbico, CEO of Pointillist, added: “We look forward to joining Genesys, a global leader in customer experience orchestration. We are excited about the future prospects of the combined companies and believe that together we can accelerate the growth of Pointillist.
Pointillist is an unrestricted subsidiary under the Company’s Senior Secured Term Loan. Altisource intends to use the proceeds of the sale for general corporate purposes.
This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical facts, including statements that relate, among other things, to future events or our future financial performance or conditions. These statements can be identified by words such as “anticipate”, “intend”, “expect”, “may”, “could”, “should”, “should”, “plan”, ” estimate ”,“ seek ”,“ ”believe”, “potential” or “continue” or the negative of these terms and of comparable terminology. Such statements are based on expectations about the future and are not statements of historical fact. In addition, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties which could cause actual results to differ materially. Important factors that could cause actual results to differ materially from those suggested by forward-looking statements include, without limitation, the risks associated with the transaction with Genesys, including with respect to the satisfaction of closing conditions. and the timing of this; delays in obtaining regulatory and other third party consents in connection with the transaction; the related unforeseen expenses or debts arising from the transaction; litigation or regulatory matters relating to the transaction; the risks discussed in Section 1A of Part I “Risk Factors” in our Form 10-K filed with the Securities and Exchange Commission, as they may be updated from time to time in our Forms 10-Q. We caution you not to place undue reliance on these forward-looking statements, which reflect our views only as of the date of this release. We have no obligation (and expressly disclaim any obligation) to update or modify any forward-looking statements contained herein to reflect any change in our expectations in this regard or any change in the events, conditions or circumstances on which a such statement is based. Risks and uncertainties to which forward-looking statements are subject include, but are not limited to, risks related to the COVID-19 pandemic, customer concentration, timing of the expected increase in default-related referrals after the expiration of foreclosure and eviction moratoria. and forbearance programs, when these moratoriums and programs expire, and any other delays caused by the actions of government, investors or service providers, use and success of our products and services, our ability to retain existing customers and attract new customers and the potential for expansion or changes in our customer relationships, technological disruption, our compliance with applicable data requirements, our use of third party suppliers and contractors, our ability to effectively manage potential conflicts of interest, macroeconomic and industry-specific conditions, our ability to effectively manage our regulatory and contractual obligations, the adequacy of our financial resources, including our sources of liquidity and our ability to repay loans and meet our Credit Agreement, including financial commitments and others contained therein, as well as Altisource’s ability to retain key officers or employees, the behavior of customers, suppliers and / or competitors, technological developments, government regulations, taxes and policies. The financial projections contained in this press release are expressly qualified as forward-looking statements and, as with other forward-looking statements, should not be relied on unduly.
Altisource Portfolio Solutions SA is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps meet the demands of the ever-changing markets we serve. Additional information is available at www.Altisource.com.
Pointillist’s award-winning customer journey management platform enables organizations to deliver seamless, connected and personalized experiences. By measuring, monitoring and orchestrating customer journeys, Pointillist solutions optimize CX and improve digital containment, contact center performance, escalation management, and more. Some of the world’s largest companies use Pointillist to analyze billions of daily interactions with users and rely on the platform to improve customer experience and business results. Pointillist is headquartered in Boston, Massachusetts and can be found on the web at www.pointillist.com.
FOR MORE INFORMATION, CONTACT:
Michelle D. Esterman
T: (770) 612-7007