Acxiom (ACXM) shares fell to their lowest since mid-2012 after saying Wednesday that it will sell its IT Infrastructure Management business (Acxiom IT) to Charlesbank Capital Partners (Charlesbank) and M/C Partners for up to $190 million cash.
Recently shares were down 7% on heavy volume of 632,504 shares. Average daily volume is 331,426 shares. Earlier in the trading session shares hit the 3-year low of $16.02.
The deal is comprised of $140 million in cash at closing and up to $50 million in contingent payments subject to certain performance metrics. In addition, Acxiom will receive a 5% profits interest in the go-forward company. The sale is expected to close in Q2 FY16.
Acxiom will use proceeds from the sale to pay down debt and to fund the expansion of its share repurchase program. As part of the revised program, Acxiom’s Board of Directors has increased its share repurchase authorization by $50 million to $300 million and extended the duration of the program through December 31, 2016.
It says preliminary Q4 sales were $257 million, down from $269 million in the year-ago period and just below the Capital IQ mean for $258.8 million. Non-GAAP EPS are seen down to $0.24 from $0.26 in the year-ago period but above forecasts for $0.22.