Discontinued Operations

6 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

UK Entity - Fiscal 2014

In March 2014, we completed the sale of our UK entity to Verteda Limited (Verteda), a U.K. based company, for total consideration of approximately $0.6 million, comprised of $0.7 million in cash and a receivable due to Agilysys from Verteda of $0.8 million, net of cash on hand of $0.9 million. We received $0.3 million in cash during the first half of fiscal 2015, resulting in a remaining receivable of $0.5 million. We expect to receive the remainder of this balance within fiscal 2015. In connection with the sale, we have entered into a multi-year distribution agreement whereby Verteda will distribute certain Agilysys products within the U.K. We will continue to manage all property management system accounts as well as key global accounts in the EMEA market.

Sale of Assets of RSG - Fiscal 2014

In July 2013, we completed the sale of our RSG business to Kyrus Solutions, Inc. (Kyrus), an affiliate of Clearlake Capital Group, L.P., for total consideration of approximately $37.6 million in cash, including a working capital adjustment of $3.1 million. Upon the close of the transaction, the aggregate purchase price was reduced by fees of approximately $1.6 million for transaction related costs, resulting in net proceeds received of approximately $36.0 million. In addition to the purchase agreement, we entered into a transition services agreement (TSA) with Kyrus, under which we provided certain transitional administrative and support services to Kyrus through January 31, 2014.

The sales of our RSG business and UK entity each represented a disposal of a component of an entity. As such, the operating results of RSG and the UK entity have been reported as a component of discontinued operations in the Condensed Consolidated Statement of Operations and Condensed Consolidated Statement of Cash Flows for the three months endedSeptember 30, 2013. In addition, the assets and liabilities of RSG and the UK entity have been classified as discontinued operations in our Condensed Consolidated Balance Sheet as of September 30, 2013.

Components of Results of Discontinued Operations

Income from discontinued operations was comprised of the following:

	Three months ended			Six months ended
	September 30,			September 30,
(In thousands)		2013			2013
Discontinued operations:
Net revenue		$	1,733		$	26,848
Income from operations		36			781
Other expense, net		44			(9		)
Gain on sale		23,135			23,135
Income before tax from discontinued operations		23,215			23,907
Income tax expense		1,453			1,618
Income from discontinued operations		$	21,762		$	22,289

Income tax expense recorded during the three months and six months ended September 30, 2013 is due to intra-period tax allocation rules associated with discontinued operations.