Irving-based Exela Technolgies has struggled to solve debt and liquidity issues.Irving-based Exela Technologies says it has received an offer to buy one of its business units that brings in $200 million in annual revenue.
Exela’s announcement Wednesday didn’t identify either the potential buyer or the business unit and characterized the offer as “a preliminary, non-binding proposal.” Exela is in talks with other entities about “additional acquisition proposals” as part of its 10-month-long campaign to boost investor confidence.The business process automation company said in September 2021 that it was committing $400 million to reduce debt and increase shareholder value.
“Our plans now include sales of assets as an incremental source of capital, with the ultimate goal of initiating a stock buyback program in the future,” executive chairman Par Chadha said at the time. Philip Brendel, a senior credit analyst at Bloomberg Intelligence, said the preliminary nature of the offer could be a reason why Exela isn’t disclosing the potential buyer.
Over the last year, the company’s shares sank from $4.34 to 10 cents. In the midst of the stock price drop, the company underwent a CEO change with Ronald Cogburn leaving in April and Chadha running the company. Earlier this week, it appointed Suresh Yannamani as chief executive of one of its subsidiaries. Exela also brought on Sriram Ramanathan as