GlobalOptions To Sell Preparedness Services Unit

GlobalOptions Group

, a leading provider of domestic and international risk management services, has entered into a definitive agreement to sell the assets of its Preparedness Services unit and reporting segment to Witt Group Holdings, LLC for a total consideration of up to $22.0 million. James Lee Witt, a current officer of GlobalOptions, as well as Mark Merritt, Barry Scanlon and Pate Felts, respectively the Co-President, Co-President, and Senior Advisor of the Preparedness Services unit are principal members of Witt Group Holdings. The transaction, which is subject to shareholder approval, is expected to close in the third quarter. The company has entered into a definitive agreement to sell its Preparedness Services unit to Witt Group Holdings for an aggregate maximum cash consideration of $22.0 million, consisting of (i) a $10.0 million fixed portion in cash and (ii) contingent consideration based on 40% of revenues in excess of $15.0 million recognized during the twelve months following closing, with total contingent consideration not to exceed $12.0 million, plus the assumption of substantially all of the liabilities of the Preparedness Services unit. The transaction is subject to adjustments for working capital and includes an escrow of a portion of the fixed cash amount.