The Vortiv Ltd (ASX: VOR) share price is on the rise this morning after the company announced its quarterly update for September. At the time of writing, the Vortiv share price is trading 6.25% higher at 17 cents. Shares in Vortiv have enjoyed a positive year so far, however the financial services provider has been on a sharp downward trend in recent months.
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What Vortiv does
Vortiv is a technology company involved in IT management services. Currently, it owns Cloudten Industries and Decipher Works which provide IT and cyber security services for many large firms in Australia. Although this situation looks set to change as discussed further below.
The company also holds a 24.89% interest in TSI India. This is a company that provides solutions in the payments, electronic surveillance and managed services spaces. TSI India owns and manages around 14,000 ATMs in India.
What's moving the Vortiv share price?
Investors are today driving the Vortiv share price higher after the company announced it has achieved its targeted financial results for the quarter. In doing so, Vortiv achieved revenue of $3.2 million, which was up 45% compared to the prior corresponding period. This result was on the upper end of the company's expectations.
Furthermore, Vortiv's earnings before interest and tax (EBIT) came in at $0.43 million. This represented the seventh straight quarter that the company has been EBIT positive.
In terms of new business opportunities, Vortiv announced it had won approximately $2.9 million during the quarter. This included contracts with existing and new clients.
Sale of cybersecurity business
It was recently announced that Vortiv is planning to sell its cybersecurity businesses (Cloudten and Decipher) for a cash consideration of $25 million. The proposed transaction is subject to shareholder approval, but with the board's backing, the transaction is expected to be completed in December.
In addition, the company is finalising the application for a proposed buyback to return approximately $20 million to shareholders. After the sale, Vortiv intends to remain an ASX listed company with interest in TSI India.
