Italy's Eurotech to sell U.S. unit for $38 mln

Reuters

MILAN, Oct 1 (Reuters) - Italian technology company Eurotech has signed a deal to sell its U.S. aerospace anddefence computer operation Parvus Corp to the Curtiss-Wrightgroup for $38 million.

The sale of Parvus, which specialises in manufacturingrugged computing and communication systems to companies such asLockheed Martin, Northrop Grumman and Boeing, allows Eurotech toexit what it now views as a non-core sector as it seeks toreturn to profit after its net loss last year narrowed to 2.8million euros ($3.8 million) from 7.2 million euros in 2011.

The deal is worth about half of Eurotech's market value andthe Italian company said it will use the money for investmentand the development of strategic products such as pervasive andlow-power computers, as well as possible acquisitions.

Eurotech bought Parvus in 2003 for about $2.3 million. Thedivision made a core profit of $4.9 million on revenues of $20.2million last year.

By 0945 GMT, Eurotech shares were up 2.5 percent at 1.58euros, their highest level since the stock hit a two-year highlast week.

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