Sigma Additive Solutions has announced it has signed a non-binding letter of intent (LOI) to sell its intellectual property assets related to its additive quality assurance product to an unnamed strategic buyer.
It comes as a non-binding LOI has also been signed for Sigma’s 100% acquisition of the capital stock of travel technology company NextTrip in exchange for 19.99% of Sigma common stock constituting, plus additional shares of Sigma common stock upon the achievement of post-closing milestone earnouts tied to the business performance of NextTrip. Sigma Additive Solutions is also expected to operate under the NextTrip brand and remain on the NASDAQ stock exchange, albeit under a new trading symbol reflecting the NextTrip name.
Sigma Additive Solutions has agreed with NextTrip to value Sigma Shares at $0.40 per share, giving the total transaction a starting value of approximately 48 million USD. The companies expect this transaction – and that of the sale of its additive quality assurance IP – to close in Q4, though both are subject to the negotiation and execution of the definitive acquisition agreements, regulatory and shareholder approvals and other customary closing conditions.
Sigma Additive Solutions says both transactions are being made to ‘maximise shareholder value.’
As of yet, no further details have been made public regarding Sigma Additive’s decision to sell its additive quality assurance IP, nor has there been any indication as to who the ‘strategic buyer’ is. Though the company has been willing to offload its quality assurance IP assets, it has still entered into several partnerships in recent months, including a product development collaboration with DyeMansion and an integration with Materialise.
Jacob Brunsberg, President and Chief Executive Officer of Sigma, commented: “With our focus on increasing shareholder value as we explored a variety of strategic alternatives, we believe a transaction with NextTrip provides a significant opportunity to participate in a leading travel brand with an array of product offerings and concierge services. The transaction would imply a solid valuation for Sigma and good positioning in public markets. As well, we have a clear path to add value from the sale of Sigma’s current assets in the business of process monitoring with our signed letter of intent from a strategic buyer to acquire the assets.
“NextTrip’s recently acquired scalable booking engine and platform offers numerous proprietary booking solutions allowing travellers to customise itineraries to meet their needs. We believe NextTrip’s leadership team is addressing a clear underserved demand for a differentiated and tailor-made approach in the online travel space. Our ambition is to allow NextTrip the ability to amplify its growth plans and expand its reach into new markets for the benefit of Sigma equity holders, while tying the issuance of additional equity to clear business objectives for NextTrip.”
Until the transactions close, Sigma Additive Solutions and NextTrip will remain separate and independent of each other.
