FiscalNote Holdings Inc (NYSE:NOTE) shares are trading higher Monday after the company announced a deal to divest two non-core assets for $40 million.

What Happened: FiscalNote entered into a definitive agreement to divest two portfolio companies within its Global Intelligence business, Oxford Analytica and Dragonfly, to Dow Jones for a total consideration of $40 million.

The deal will help FiscalNote reduce its senior term loan and strengthen its balance sheet while further simplifying the company’s business. The transaction is expected to close in the first quarter of 2025.

“This divestiture enables us to pay down a significant portion of our senior term loan, resulting in a cumulative paydown of more than 60 percent in the past year,” said Josh Resnik, president and CEO of FiscalNote.

“Beyond strengthening our financial position, this move will streamline operations, expand Adjusted EBITDA margins, and accelerate our path to positive free cash flow. It also will further sharpen our focus on our core Policy solutions – including PolicyNote, our cutting-edge AI-powered policy management solution – to drive growth.”

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FiscalNote also announced that it engaged former head of contracts for Palantir’s (NYSE:PLTR) U.S. government vertical John Lee as a senior strategic advisor.

Lee is expected to help support FiscalNote’s mission to provide the public sector with AI and data-driven solutions that enhance operational efficiency, responsiveness and decision-making.

“FiscalNote empowers government entities to operate more efficiently by driving cost savings, improved transparency, and better outcomes for taxpayers,” Resnik said.

“John’s expertise in bringing next-generation technology to the federal government aligns perfectly with FiscalNote’s ongoing efforts to empower decision-makers with efficient, AI-powered insights that streamline and optimize complex government operations.” 

NOTE Price Action: FiscalNote shares were up 1.79% at $1.42 at the time of publication Monday, according to Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.