Novatti sells Emersion business for $500,000
Key points
- Novatti sells its Emersion business to CGP Equity
- Follows strategic review of business units against long-term goals
- Divestment supports pivot back to growth for streamlined business
Full summary
Novatti Group Limited (ASX: NOV), a leading fintech enabling businesses to pay and be paid, has sold its wholly-owned subsidiary, Emersion Systems Pty Ltd (Emersion Systems), the operator of its Emersion business, to a wholly-owned subsidiary of CGP Equity. The sale of Emersion Systems follows Novatti's ongoing strategic review of all business units and subsidiaries against the Company's long term financial goals and targets. This review concluded the original rationale for acquisition had not been achieved and the business was unlikely to contribute to Novatti's long term financial goals. Novatti CEO, Mark Healy, said: 'Since 2021, Novatti has invested in building Emersion and integrating it into the Group, however the business no longer fits our strategic direction. Following our ongoing strategic review, Novatti is concentrating resources and focus on scaling the Group's core payments infrastructure and divesting non-core assets. CGP Equity brings extensive and successful experience in the managed service provider and telecommunications sector making them ideally placed to guide Emersion through its next phase of growth. This divestment allows Novatti to re-focus capital and management attention to the Group's most attractive growth priorities and to delivering sustainable returns to shareholders.'
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