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Tetra flogs stationery rights

Diverts proceeds into software licences

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Tetra has flogged the intellectual property rights (IPR) to its business forms division to Software Stationery Holdings for £150,000 cash. SSH also gets rights to use the Tetra customer database for two years. In return it will pay commission on all future sales to the database, committing to a minimum of £200,000 per year over the next two years. Tetra said the business forms division is non-core as it focuses on sales to customers with low-end systems. The company will funnel the proceeds from the sale into resourcing software licence sales “where margins and growth are substantially higher”. In the year to 31 May 1998, the Business Forms Division made £179K PBT on £1,044,000 sales. No amount was attributed to the IPR in Tetra's balance sheet as at 31 May 1998. ®: Click here for more stories

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