CLEVELAND (AP) -- Agilysys Inc. said it has reached an agreement to sell its Technology Solutions Group business for $64 million in cash to OnX Enterprise Solutions, and announced that Martin Ellis will be stepping down as president and chief executive. The news pushed the stock up more than 40 percent.
Agilysys, which develops proprietary enterprise software and services for the hospitality and retail industries, said that going forward it will focus on profitably growing its core businesses.
The sale of the Technology Solutions Group business, which provides information technology and data center services to medium and large enterprise customers, is expected to close in the quarter ending Sept. 30. The buyer, Toronto-based OnX, provides information technology and data center services.
Agilysys said it will have more than $120 million in cash on hand and will be debt-free after the sale closes.
The company said board member James Dennedy will serve as interim president and chief executive. Ellis, who is stepping down to pursue other career interests, will continue to serve as special adviser to the board's non-executive chairman, Keith Kolerus, until the annual shareholder meeting on July 28.
Agilysys shares rose $1.97, or 41 percent, to $6.75 in Tuesday afternoon trading.