(By Balaseshan) Progress Software Corp. (NASDAQ: PRGS) said it has agreed to sell its non-core Sonic, Savvion, Actional and DataXtend (DXSI) product lines to the investment arm of Trilogy Enterprises for an undisclosed sum.
The divestitures announced to date represent 80 percent of the company's non-core revenue stream and have served to further enhance its management team's focus on the current core business.
The company remains committed to the expeditious divestiture of the remaining non-core product lines. To date, Progress has closed its previously announced sale of FuseSource to Red Hat and expects the sale of its Shadow product line to Rocket Software to be completed shortly.
Taken together, the total sales price for all divested products and products under agreement to be divested to date is about $114 million. The combined fiscal 2012 year-to-date revenue of these products is $83 million, which represents about 80 percent of the total non-core revenue stream.
The transaction is subject to customary closing conditions and is expected to be completed in November 2012. Upon completion, ObjectStore and Orbix, which includes the Artix and Orbacus products, will be the only product lines remaining to be divested.
Pacific Crest Securities LLC is serving as Progress' financial advisor with respect to the transaction and Wilmer Cutler Pickering Hale and Dorr LLP is serving as Progress' legal counsel.
PRGS is trading up 3.58 percent at $18.82 on Thursday. The stock has been trading between $17.01 and $24.76 for the past 52 weeks.