Intrado Completes Divestiture of Health Advocate

Rhea-AI Summary

Intrado Corporation has completed the sale of its Health Advocate business to Teleperformance for approximately $690 million. The net proceeds are around $591 million after taxes, fees, and expenses. Intrado plans to use approximately $350 million to pay down its term loans and $100 million for repurchasing its Senior Notes due 2025. The remainder of the proceeds will be reinvested in the company, allowing focus on cloud-based technology and next-generation solutions.

Positive

• Sale of Health Advocate business for $690 million enhances focus on core operations.
• Net proceeds of approximately $591 million will strengthen balance sheet.
• Plans to reduce debt by $350 million and repurchase $100 million in Senior Notes.

Negative

• None.

ISLANDIA, N.Y., June 22, 2021 (GLOBE NEWSWIRE) -- Intrado Corporation (“Intrado” or the “Company”), a global leader in technology-enabled services, today announced it has completed the previously announced sale of its Health Advocate business to Teleperformance. The sale of this business will allow Intrado to further focus on its remaining cloud-based technology and next generation solutions.

The purchase price was approximately $690 million. The net proceeds of the sale which reflect, among other things, the netting of taxes, fees, and expenses relating to the sale, are approximately $591 million. The Company intends to use approximately $350 million of the net proceeds to repay a portion of its outstanding term loans and approximately $100 million to repurchase its 8.50% Senior Notes due 2025 via an asset sale offer. The Company expects to use the remaining net proceeds to reinvest in the business.

About Intrado

Intrado Corporation is an innovative, cloud-based, global technology partner to clients around the world. Our solutions connect people and organizations at the right time and in the right ways, making those mission-critical connections more relevant, engaging, and actionable - turning Information to Insight.

Intrado has sales and/or operations in the United States, Canada, Europe, the Middle East, Asia Pacific, Latin America, and South America. Intrado is controlled by affiliates of certain funds managed by Apollo Global Management, Inc. (NYSE: APO). For more information, please call 1-800-841-9000 or visit www.intrado.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements include any statements that address future results or occurrences. In some cases you can identify forward-looking statements by terminology such as “may,” “might,” “will,” should,” “could,” or the negatives thereof. Generally, the words “anticipate,” “believe,” “continue,” “expect,” “intend,” “estimate,” “project,” “plan,” and similar expressions identify forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions of future events or performance contained elsewhere in this press release are forward-looking statements. These forward-looking statements include statements that are not historical facts, including statements concerning our possible or assumed future actions and business strategies. We have based these forward-looking statements on our current expectations, assumptions, estimates, and projections. While we believe these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors, many of which are outside of our control, which could cause our actual results, performance, or achievements to differ materially from any results, performance, or achievements expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update any such factors or to announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events, or developments. Statements in this press release are made as of the date hereof. New factors emerge from time to time that could cause our actual results to differ, and it is not possible to predict all such factors.

Contact

Dave Pleiss
Investor and Public Relations
DMPleiss@Intrado.com
402-716-6578

FAQ

What was the sale price of Intrado's Health Advocate business?

The Health Advocate business was sold for approximately $690 million.

How much will Intrado reinvest after the sale?

Intrado plans to reinvest the remaining net proceeds from the sale after debt repayments.

What will Intrado do with the proceeds from the Health Advocate sale?

The proceeds will be used to repay term loans, repurchase Senior Notes, and reinvest in the business.

What company acquired Intrado's Health Advocate business?

Teleperformance acquired Intrado's Health Advocate business.

What are the financial implications of Intrado's recent sale?

The sale strengthens Intrado's balance sheet, providing $591 million in net proceeds for debt reduction and reinvestment.