FiscalNote Holdings, Inc. Completes Sale of Aicel Technologies, Inc. in Strategic Move

FiscalNote Holdings, Inc. recently announced the successful sale of its subsidiary, Aicel Technologies, Inc., with details outlined in their Form 8-K filing. The sale, which closed on October 30, 2024, involved the transfer of Aicel to Vaon Technology Co., Ltd. for a total consideration of $8.5 million in cash along with the assumption of Aicel’s convertible bond amounting to around $1.2 million.

Upon finalizing the transaction, FiscalNote utilized a portion of the cash consideration to retire $5.0 million in principal and accrued interest under the company’s Senior Term Loan, dealing with associated prepayment and exit fees. The residual funds were allocated towards a management incentive program for essential Aicel members, as well as to cover taxes, fees, and expenses arising from the sale process.

By divesting Aicel, FiscalNote aims to enhance its financial flexibility by reducing debt and concentrating resources on core markets for sustained annual recurring revenue growth and shareholder value maximization. FiscalNote disclosed that the divested subsidiary, Aicel, which primarily catered to the Korean market by providing unique datasets for global financial markets, contributed approximately $2.0 million (1.6%) of FiscalNote’s GAAP revenue over the preceding twelve-month period leading up to June 30, 2024.

Tim Hwang, Chairman, CEO, and Co-Founder of FiscalNote, explained, “This transaction enhances our financial flexibility through further deleveraging of our balance sheet and allows us to focus on our core markets and on offerings where we see the greatest potential for long-term annual recurring revenue growth and shareholder value creation.” He further emphasized the company’s strategic direction, focusing on capitalizing on core business strengths and operational efficiencies for sustained growth.

This divestiture is aligned with FiscalNote’s ongoing strategy of maximizing shareholder value, simplifying its operations, and sharpening its focus on core business activities. The company disclosed plans to provide additional details regarding the financial implications of this sale during its upcoming third-quarter earnings call scheduled for November 12, 2024.

FiscalNote, a leader in policy and global intelligence, has been at the forefront of delivering critical insights to customers worldwide, empowering them to manage political and business risks effectively. With this recent strategic move, the company reinforces its commitment to driving sustainable growth and unlocking shareholder value.

The press release related to this sale can be referred to as Exhibit 99.1 in the Form 8-K filing dated October 31, 2024.

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The official announcement in the 8-K filing from FiscalNote Holdings, Inc. signals a significant step in its strategic realignment through the divestiture of Aicel Technologies, Inc. For further updates and insights, investors are encouraged to monitor FiscalNote’s forthcoming earnings call scheduled for November 12, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read FiscalNote’s 8K filing here.

About FiscalNote

FiscalNote Holdings, Inc operates as technology company North America, Europe, Australia, and Asia. It combines artificial intelligence technology, machine learning, and other technologies with analytics, workflow tools, and expert research. The company also delivers that intelligence through its suite of public policy and issues management products, as well as powerful tools to manage workflows, advocacy campaigns, and constituent relationships.