Chesapeake Utilities Corporation, Dover, has sold its BravePoint, Inc. (subsidiary, a provider of advanced information technology services and solutions, to Progress Software Corporation for approximately $12 million in cash.
Chesapeake will initially use the proceeds to retire a portion of its short-term debt, but plans to reinvest all of the proceeds in its regulated and unregulated energy businesses within the next 12 months. The transaction will have a significant positive impact on 2014 earnings as Bravepoint has posted meager earnings or losses.
Bravepoint is based in suburban Atlanta and came out of work to make software needed by the gas utility. It has been a long-time part of the company’s portfolio, but has not grown as fast as the rest of the business.
“Chesapeake is committed to continuing the successful execution of its strategic plan by focusing on the growth of its core energy businesses,” said Michael P. McMasters, CEO of Chesapeake Utilities Corporation.
Chesapeake has seen rapid growth, due to falling natural gas prices that have spurred demand in its territories on the Eastern Shore and portions of Florida. It also acquired a natural gas and electric utility that serves an area near Jacksonville.
