IDE Group in advanced talks to sell Connect business

Bournemouth MSP had previously said it was mulling the sale of networking and connectivity subsidiary

Cloud and IT MSP IDE has said it is in "advanced discussions" to sell its Connect business to an unnamed buyer for an expected consideration of £250,000.

The Bournemouth-based company said in July that it was considering the divestment of the subsidiary after a difficult 2020 which saw the group's revenue tumble from £28.2m to £24.1m.

"IDE Group Holdings plc the mid-market network, cloud and IT managed services provider, announces that it is in advanced discussions to sell its wholly owned subsidiary, IDE Group Connect Limited ("Connect") for an expected consideration of £250,000," the London Stock Exchange update states.

"The company will issue a further update in due course."

Revenue for the networking and connectivity focused division fell to £13.1m from £14.6m and adjusted EBITDA was recorded at a loss of £0.8m, IDE's latest results showed.

The MSP made several cost cutting measures during 2020, including redundancies to reflect the decline in "certain service lines" but offered an optimistic outlook for its managed services business in its recent results, claiming its financial performance is "significantly ahead" of 2020.