Sydney headquartered MOQ has sold off one of its subsidiaries, Skoolbag, for $4 million in cash.
The ASX-listed company, which also owns cloud specialist MOQDigital, told shareholders that it had sold 100 percent of the shares in its wholly owned subsidiary, Iimage Technical Services Pty Ltd, trading as Skoolbag.
The communication tool for school students has been snapped up by Indian training company Skilligence which operates in Australia under the brand Junior Engineers.
The sale is expected to complete on or before 30 September 2021, subject to certain conditions which MOQ expects to be met in the ordinary course, according to a company statement.
MOQ said it will provide transitional services to the purchaser if required for a limited period. Proceeds from the sale will increase MOQ’s cash position which is “an important enabler of the company’s future growth strategy,” it told shareholders.
“The divestment of Skoolbag, which is a non-core asset for MOQ, allows us to solely focus our efforts on growing MOQ into a market leading Cloud centric technology services and solutions business, supporting our clients on their Digital Transformation journey,” MOQ CEO Joe D’Addio said.
“We continue to actively pursue suitable growth opportunities bother (sic) via organic investment or through further synergistic acquisitions in the technology sector. I would like to personally thank all Skoolbag staff who have done a great job over the last few years to modernise the Skoolbag application and establish it as a SAAS platform for the future.
“I firmly believe that this change of ownership will provide the application and the team an excellent opportunity for further success.” Junior engineers boss Adam Jacobs said in the same statement.
"We are excited to announce our acquisition of Skoolbag. Junior Engineers and Skoolbag form the cornerstones of the EdTech Group, a new combination of complementary companies that combined, deliver technology based solutions to make school-life more convenient, connected and enjoyable for schools, parents and students.“