Software business Sanderson has disposed of its electronic point of sale business through a deal with Torex Retail.

Software business Sanderson has disposed of its electronic point of sale business through a deal with Torex Retail.

Torex, which provides technology services to the retail, hospitality and convenience and fuel markets, is acquiring the business from Sanderson for an initial consideration of £11.5 million.

The Retail Division (RBS) of Sanderson being acquired reported revenues of £12.5 million for the year to date September 2011, with its principal activity being supporting retailers such as Selfridges, Hamleys, Fenwick and French Connection.

Steve Rowley, chief executive officer at Torex, comments: ‘We have worked closely with RBS for many years and this acquisition makes perfect sense.

‘It brings together RBS’ excellent managed services and delivery capabilities with our market leading technology and go-to-market strategy.’

Under the terms of the deal an initial £11.5 million is due on completion with an additional £150,000 due on April 6, and a further £100,000 payable dependent on receipt of specific customer payments.

According to Sanderson the cash proceeds of the sale will enable the Group to repay its bank debt and leave a positive cash balance of approximately £4 million.

Christopher Winn, chairman at Sanderson, add: ‘We believe that this is both a satisfactory transaction for Sanderson shareholders as well as a good opportunity for both the Sanderson RBS staff as well as for Torex, led by Steve Rowley.