ATLANTA Netzee Inc., a provider of Internet banking software, announced on Monday that it had signed a letter of intent to sell the assets of its DPSC subsidiary to InterCept Group Inc.
DPSC provides regulatory reporting and asset and liability management software to community banks. InterCept, based in Norcross, Ga., would pay about $14.3 million in cash and assume some operating liabilities. The deal, which is subject to the negotiation of a definitive agreement, is expected to close in February.
In a press release, Netzee said it expects proceeds from the sale to allow it to reach positive cash flow this year. DPSC contributed about $5.5 million to Netzees revenues last year.
Netzee also announced plans to cut its work force by 29% over the next 180 days. It expects savings of $14 million a year and will take a $2 million nonrecurring charge this quarter for related expenses.
The company, whose stock has hovered at $1 since early November, has suffered from Wall Streets lack of enthusiasm for the Internet banking industry as well as from slow sales and implementations of its products.