OXFORD, United Kingdom—The much troubled German e-commerce developer Brokat Technologies has agreed to sell its mobile business unit to EOne Global, a U.S. company specializing in payment solutions via the Internet, for a reduced price of e28.25 million (US$24.8 million). Brokat said in August it was looking to sell its mobile division to EOne for e42 million (US$36.8 million) as part of a drive to cut its substantial debt burden.
Brokat, which is currently negotiating a restructuring of its debt with bond holders, hopes that the sale of its m-commerce arm will help save some 400 jobs, which are endangered by the uncertainty surrounding the business and Brokat as a whole. However, the company only has cash reserves of e25 million (US$21.9 million), and industry analysts believe that unless a financial rescue package is forthcoming in the near term, the company’s future will be seen as doubtful.
EOne, a unit of First Data Corporation, confirmed that it had waived an earlier requirement that 80 percent of the holders of Brokat’s 11.5 percent senior notes had to approve the sale. Brokat’s shares have been suspended from trading by the German stock exchange operator Deutsche Boerse.
