Elephant Talk Communications Corp. announced that it has entered into an agreement with Cross River Initiatives LLC to divest its subsidiary ValidSoft UK Ltd. for a total consideration of $12.5 million. Elephant Talk is divesting the business in order to shore up its balance sheet and provide working capital to support its restructuring efforts and pursue growth opportunities. ValidSoft secures transactions for clients in the financial services, government and enterprise sectors utilizing its multi-factor authentication platform, Voice Biometric engine, and Device Trust technology.
The total consideration includes a $500K advance paid on January 19 which is structured as a loan if the transaction is not completed, $8 million at closing, and a $4 million short-term secured note.
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