Ft. Lauderdale, FL – Patriot National, Inc. (NYSE:PN) recently announced that it sold, on April 3, 2017, substantially all of the assets of Global HR Research, a pre-hire intelligence solutions provider, to a subsidiary of Renovo Capital, LLC for total consideration of up to $30 million.
The transaction reflects Patriot National’s strategic plan to focus on its core businesses, workers’ compensation insurance services and technology. The Board of Directors of Patriot National approved the sale.
The purchase price for the sale of Global HR is up to $30 million, plus the assumption of certain liabilities. Specifically, $20 million was paid to Global HR in cash at closing and $5 million will be deposited into escrow for possible purchase price and working capital adjustments, satisfaction of certain post-closing conditions and any indemnification claims. In addition, Global HR may receive an earnout payment of up to an additional $5 million. The Company expects that the sale of Global HR will impact its prior 2017 financial guidance, issued on March 14, 2017, for Fee Income and Adjusted EBITDA for the balance of the year by $13 million and $2 million, respectively.
Source: Patriot National