Chesapeake Utilities Sells BravePoint Unit For About $12 Mln

(RTTNews) - Chesapeake Utilities Corp. (CPK) said Wednesday that it has sold its BravePoint, Inc. subsidiary, a provider of advanced information technology services and solutions, to Progress Software Corp. (PRGS) for about $12 million in cash.

Chesapeake said it 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 deal will have a significant positive impact on 2014 earnings. It is also expected to have a positive impact on Chesapeake's earnings in the year 2015 and beyond from the successful redeployment of the proceeds. The redeployment is expected to generate results that exceed the earnings contribution by BravePoint over the last 12 months.