NEW HARTFORD, N.Y. — PAR Technology Corp. (NYSE: PAR) today announced it has closed on a sale of “substantially all” of the assets of its hotel-technology business, which operated as PAR Springer-Miller Systems Inc.
PAR Technology announced the Springer-Miller sale as part of its third-quarter earnings news release issued Thursday morning.
Affiliates of Toronto, Ontario–based Constellation Software Inc. (TSX: CSU) bought the assets for $16.6 million in cash, PAR Technology said.
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Constellation’s wholly-owned subsidiary, Gary Jonas Computing Ltd. “and certain of its affiliates” acquired the assets, according to a news release posted Tuesday on the website of Constellation Software.
In its release, PAR also noted the “opportunity for additional payment of $1.5 million if certain sales targets are achieved.”
The transaction closed on Wednesday.
“We believe selling the Springer-Miller business is the best way to focus on our core businesses to accelerate performance and growth. This sale provides the company with the financial flexibility to explore future opportunities to enhance our strategic position and immediately strengthens our balance sheet,” Ronald Casciano, president and CEO of PAR Technology, said in the release.
Based in New Hartford, PAR sells hardware and software to the hospitality industry. Its government business provides computer-based system design, engineering, and technical services to the U.S. Department of Defense and various federal agencies.
PAR reported net income from continuing operations of $1.3 million, or 8 cents per share, in the third quarter that ended Sept. 30. That’s up from net income of $700,000, or 4 cents, in the same period in 2014.
PAR generated revenue of $58.1 million in the third quarter, up 10 percent from $52.6 million in the year-ago period.
“We are successfully executing our plan to grow revenue with new customers and also achieve our cost reduction objectives. These measurable improvements in results reflect the continued enhancements we have made to deliver cutting edge solutions to the markets we serve that continue to consistently exceed the customer’s requirements,” said Casciano.
PAR’s stock price soared nearly 20 percent, or $1.01 per share, in today’s regular trading to close at $6.20. More than 400,000 shares traded hands, which was 23 times PAR’s average daily trading volume during the last three months.
Contact Reinhardt at ereinhardt@cnybj.com
