Cello Health Pays Back £1.6m to Pulsar Buyer

UK-based group Cello Health has agreed to pay £1.6m to comms software firm Access Intelligence (AI), after net assets of the former firm's social media analysis software business Pulsar fell below an agreed target following completion of its sale.

The deal was first announced in October, and involved Cello selling Pulsar, which comprises Fenix Media Limited and Face US Inc ('Pulsar'), to AI for £4.5m. The amount was payable in AI shares, with some 8.65m to be issued to Cello, of which around 229,000 were to be assigned to Pulsar CEO Francesco D'Orazio.

Cello agreed to make a cash adjustment for any difference from the agreed target level of current assets once the deal had completed. In addition to the cash payment of £1.6m, Cello and AI have agreed to a reduction in the purchase price through 4,076,238 AI shares being bought back by AI. Cello will retain 4.1 million shares in AI after this final settlement.

In a statement, Cello said: 'Following an approach to the group from AI, the decision to sell Pulsar was made as the Pulsar business was deemed to have become a non-core business outside the group's scope of strategic focus, with a business model that was different from the rest of Cello. The management team of Pulsar and the group were in agreement that AI would be a more appropriate parent company to fully exploit the significant software opportunity offered by Pulsar'.

Web sites: www.cellohealth.com , www.pulsarplatform.com and www.accessintelligence.com .