Motion capture software provider OMG is withdrawing from its loss-making US property appraisal operations.
In order to facilitate the exit from the US OMG has signed an agreement with Tyler Technologies Inc, which will takeover the Miami Dade contract. This was worth $3.6m over three years when it was won in the 2008-09 financial year.
OMG’s Yotta subsidiary bought US-based Mobile Video Services in 2008 for $4m (£2m) - the dollar was much weaker in those days. There was initial consideration of $2.5m (£1.25m) in cash and shares with the rest deferred. The US property market started its downturn just as OMG made the acquisition. The business lost £700,000 in 2009-10.
The Yotta business in the UK is also losing money but not at the same rate as in the US. It has won a four year contract from the Welsh Assembly.
At 27.75p a share, OMG is valued at £19.6m.
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