Talks on sale of Procurri segment called off

Discussions over the sale of data centre services company Procurri Corporation's third-party hardware maintenance business have been called off, as the final price and deal structure could not be agreed upon.

Procurri and the potential buyer, Park Place Technologies, have mutually agreed to terminate further discussions, the mainboard-listed enterprise hardware supplier said in a regulatory update yesterday before the market opened.

Procurri also provided written notice to Park Place that the exclusivity period for the deal would not be extended beyond 11.59pm New York City time on Tuesday.

Last November, Procurri announced that it had accepted a non-binding letter of intent from Park Place, a third-party maintenance company, which was looking to buy the business unit for US$115 million (S$154.9 million) in cash.

An exclusivity agreement until Dec 31 last year was also inked, subject to three 15-day extensions.

The company, headquartered in Singapore, is a global independent provider of IT life-cycle services and data centre equipment, with a reach spanning more than 100 countries.

Procurri shares closed yesterday at 38 cents, down 13.6 per cent.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on January 16, 2020, with the headline 'Talks on sale of Procurri segment called off'. Print Edition | Subscribe