Exela Technologies Confirms Receipt of Acquisition Proposal

Rhea-AI Summary

Exela Technologies, Inc. (NASDAQ: XELA, XELAP) announced receipt of a preliminary, non-binding acquisition proposal for a business unit generating approximately $200 million in revenue. The Company is in discussions with various parties regarding additional offers. This move aligns with Exela's strategy to maximize shareholder value by potentially divesting standalone assets, reducing debt, and lowering annual interest expenses. Exela's Board of Directors will review the proposal with its advisors, but no assurance of a finalized agreement or transaction is guaranteed.

Positive

• Received a non-binding acquisition proposal for a $200 million revenue business unit.
• Engaging with multiple parties for additional acquisition proposals.

Negative

• No guarantee of final agreement or transaction execution.
• Potential uncertainty regarding the sale process and its impact on stakeholders.

IRVING, Texas, July 13, 2022 (GLOBE NEWSWIRE) -- Exela Technologies, Inc. (“Exela” or the “Company”) (NASDAQ: XELA, XELAP) today confirmed that it has received a preliminary, non-binding proposal (the “Proposal”) to acquire an approximately $200 million revenue business unit of Exela, subject to certain conditions, including due diligence. The Company is in active discussions with several counter-parties about additional acquisition proposals.

On June 6, 2022 the Company announced its strategic plans initiating the sale process for several standalone assets, as part of a broader mandate to maximize shareholder value, including further reduction, exchange of debt, lowering its overall annual interest expense and/or repurchasing common stock. The Company is evaluating the Proposal as well as other strategic alternatives which may enhance shareholder value.

Consistent with its fiduciary duties and in consultation with its financial and legal advisors, Exela’s Board of Directors will carefully review the Proposal. There can be no assurances that any definitive agreement will be executed or that a transaction will be approved or consummated. The Company does not undertake any obligation to provide updates with respect to this or any other transaction, except as required under applicable law.

For more Exela news, commentary, and industry perspectives, visit: https://investors.exelatech.com/

And please follow us on social:

Twitter: https://twitter.com/exelatech

LinkedIn: https://www.linkedin.com/company/exela-technologies

Facebook: https://www.facebook.com/exelatechnologies/

Instagram: https://www.instagram.com/exelatechnologies

The information posted on the Company's website and/or via its social media accounts may be deemed material to investors. Accordingly, investors, media and others interested in the Company should monitor the Company's website and its social media accounts in addition to the Company's press releases, SEC filings and public conference calls and webcasts.

About Exela Technologies

Exela Technologies is a business process automation (BPA) leader, leveraging a global footprint and proprietary technology to provide digital transformation solutions enhancing quality, productivity, and end-user experience. With decades of experience operating mission-critical processes, Exela serves a growing roster of more than 4,000 customers throughout 50 countries, including 60% of the Fortune® 100. Utilizing foundational technologies spanning information management, workflow automation, and integrated communications, Exela’s software and services include multi-industry, departmental solution suites addressing finance and accounting, human capital management, and legal management, as well as industry-specific solutions for banking, healthcare, insurance, and the public sector. Through cloud-enabled platforms, built on a configurable stack of automation modules, and approximately 17,000 employees operating in 23 countries, Exela rapidly deploys integrated technology and operations as an end-to-end digital journey partner.

Forward-Looking Statements

Certain statements included in this press release are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "may", "should", "would", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", "seem", "seek", "continue", "future", "will", "expect", "outlook" or other similar words, phrases or expressions. These forward-looking statements include statements regarding our industry, future events, estimated or anticipated future results and benefits, future opportunities for Exela, and other statements that are not historical facts. These statements are based on the current expectations of Exela management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties, including without limitation those discussed under the heading "Risk Factors" in Exela's Annual Report and other securities filings. In addition, forward-looking statements provide Exela's expectations, plans or forecasts of future events and views as of the date of this communication. Exela anticipates that subsequent events and developments will cause Exela's assessments to change. These forward-looking statements should not be relied upon as representing Exela's assessments as of any date subsequent to the date of this press release.

Investor and/or Media Contacts:

Vincent Kondaveeti
E: vincent.kondaveeti@exelatech.com

Mary Beth Benjamin
E: IR@exelatech.com

FAQ

What is the value of the acquisition proposal received by Exela Technologies?

Exela Technologies received a non-binding proposal to acquire a business unit valued at approximately $200 million.

What strategic plans is Exela Technologies pursuing following the acquisition proposal?

Exela is considering various strategic options, including the sale of standalone assets and debt reduction to maximize shareholder value.

What can shareholders expect from Exela's Board of Directors regarding the acquisition proposal?

The Board of Directors will review the acquisition proposal in consultation with financial and legal advisors, although no definitive agreement is guaranteed.

Is Exela Technologies considering other acquisition proposals?

Yes, Exela is in active discussions with several counter-parties to evaluate additional acquisition proposals.