Aegis Group, the global communications network, is to withdraw funding from US internet marketing firm NewworldIQ and is set to write off millions of dollars in investment.
NWIQ was acquired by eVerger, a joint venture between Aegis and Warburg Pincus, at the peak of the dotcom boom but business has proved lacklustre and the decision has been made to pull the plug.
In a statement to the stock exchange, Aegis said that new forecasts had shown a significant deterioration in anticipated revenues and increases in expected losses and funding requirements at NewworldIQ.
It is likely, therefore, that the investment which amounts to $18.1 million will be largely or entirely written off. The remaining book value of Aegis’ investment in eVerger, represented by a holding in Dynamic Logic Inc, stands at just $2.5 million.
Despite today’s announcement, Aegis said that overall trading at the group remained in line with expectations (see Aegis Heartened By Positive Annual Results).
