BATM Advanced Communications (LSE:BVC) has agreed to sell a bundle of non-core subsidiaries for combined proceeds of $37m, stripping out businesses that generated $54.4m in revenue in 2025 but only $0.4m in adjusted net profit.
The technology group, which provides secure managed networking, quantum encryption and cybersecurity solutions to governments and critical infrastructure operators, is selling entities spanning medical diagnostics, pharmaceutical distribution and pharmacy retail, primarily operating in Romania and Israel.
The consideration under the sale and purchase agreement values the disposed businesses at 33 times their adjusted net profit for the year ended 31 December 2025.
Net proceeds will be deployed across proof-of-concept funding with potential customers, accelerated research and development, working capital, and targeted acquisitions.
Following completion, one non-core subsidiary will remain: an environmental monitoring business in Hungary, which BATM said it expects to divest in the near term.
The disposed entities held total assets of $54.7m and total liabilities of $24.7m at the 2025 year-end, and their removal will significantly shrink the group's reported revenue base while leaving its adjusted profit contribution largely intact.
BATM will be subject to 24-month non-compete and non-solicitation obligations in relation to the sold businesses following closing.
"This Transaction will give us the balance sheet strength to embark on the next stage of our strategy," said chief executive Moti Nagar.
