IDE Group flogs 365 ITMS in MBO

Struggling firm moves to reduce debt with £3m sale

Struggling IDE Group has sold 365 ITMS as part of the new leadership's plans to rescue the company.

IDE, which rebranded from Coretx last year, acquired 365 in 2017 as part of an M&A spree, but has recently been going through a difficult spell that has seen its management overhauled.

Last month executive director Ian Smith slammed the previous regime for the strategy they implemented, saying the business would have become insolvent without intervention.

Smith also said that the business had been split up into its three original businesses, with 365 now being sold.

365's management have completed an MBO for £3m, via a holding company named PTCA Newco Limited. The company reported a revenue of £10.4m for the year ending 31 December 2017 and an adjusted EBITDA of £400,000.

IDE Group said the cash will be used to reduce its debt. MXC - the largest shareholder in IDE Group - supplied a loan to PTCA, but does not have a stake in the firm.

The sale leaves IDE Group with two remaining businesses - Selection Services and C4L.

IDE said it has no plans to sell either of these components, with the focus now on "right sizing the group to enable it to trade profitably".