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OMNIQ Corp Sells Legacy Business Unit to Strengthen Balance Sheet and Continue Focus on High-Growth AI & Automation Sectors
GlobeNewswireยท 2025-07-16 20:40
Core Viewpoint - OMNIQ Corp has completed the sale of a portion of its U.S.-based legacy assets to Summit Junction Holdings LLC, which eliminates approximately 63% of the Company's debt and positions it for growth [1][3]. Financial Impact - The transaction is expected to generate an estimated $35 million gain in fiscal year 2025 due to the elimination of approximately $45 million in debt, significantly improving the Company's balance sheet [7]. Strategic Focus - The divestiture allows OMNIQ to streamline operations, enhance profitability, and concentrate resources on its core high-growth divisions, specifically in Smart Automation and AI-driven products, which generated approximately $38.5 million of the total 2024 consolidated revenue [2][5]. Operational Efficiency - The sale simplifies OMNIQ's organizational structure, reduces operational burdens, and allows for scalability, thereby creating greater operational flexibility and supporting long-term efficiency and cost optimization [4]. Long-term Vision - With a leaner structure, OMNIQ can focus on its highest-margin, recurring-revenue business lines, addressing market dynamics and investor expectations while positioning itself for sustainable shareholder value through innovation and customer delivery [5][6].