ISG Sells Robotics Software Unit to Focus on Core Areas

Information Services Group, the Stamford, CT-based technology research and advisory firm launched by former Nielsen leader Michael P. Connors, has sold its robotic process automation (RPA) unit to digital transformation solutions company UST, for $27m in cash.

The unit was established in 2017 and offers RPA software implementation and licensing services - the group also acquired another RPA firm, Neuralify, in 2020, to strengthen it. Connors (pictured) says ISG decided to exit the business because its activities were 'no longer' a strategic fit with ISG's position as an independent, third-party advisory firm. Proceeds from the transaction will also allow ISG to reduce debt and return capital to shareholders.

Sajesh Gopinath, GM and go-to-market leader of UST's SmartOps division comments: 'This strategic investment in the intelligent automation space solidifies UST's position as a market leader in a dynamic sector that has the potential to transform industries, enhance productivity, improve customer experiences, and generate new revenue streams'.

A portion of the sale price - $7m - is to be placed in escrow, to be released contingent upon meeting certain revenue targets. ISG has updated its third quarter guidance to reflect the sale, and is now forecasting revenue in the range of $60m to $61m, and adjusted EBITDA in the range of $6.5m to $7.0m.

UST has around 30,000 employees in more than 30 countries and is online at www.ust.com , while ISG employs around 1,600 professionals and can be found at www.isg-one.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.