iCoreConnect Inc. Announces Agreement to Divest MSP Division to T20 in an Asset Sale, Expecting to Deliver Strategic and Financial Advantages for Investors

iCoreConnect Inc., a prominent cloud-based software and technology provider dedicated to enhancing workflow efficiency and profitability through its enterprise and healthcare platform, announced it has entered into an agreement to divest its Managed Service Provider (“MSP”) Division to The 20, LLC through an asset sale.

This strategic divestiture is expected to provide significant benefits for the Company and its investors, including:

1. Focus on Core Competencies

• Resource Optimization: This move allows the Company to allocate resources more effectively to its primary business lines, enhancing overall efficiency.
• Leadership Focus: By divesting non-core assets, management can concentrate on core operations and growth opportunities, leading to better decision-making and long-term success.

2. Financial Benefits

• Capital Generation: The asset divestiture will generate capital that will be used to reduce debt and reinvest in core areas of the business.
• Improved Financial Performance: The Company expects this divestiture to enhance key financial metrics such as profit margins as the MSP Division operated at lower margins compared to our SaaS offerings.
• Streamlined Operations: Focusing on higher-margin business lines will simplify and strengthen our operational model.

3. Strategic Repositioning

• Aligned Strategy: This move supports the Company’s goal of streamlining operations and focusing on higher-margin SaaS opportunities that better align with our long-term strategic objectives.

4. Simplified Structure

• Operational Agility: A leaner organizational structure will reduce complexity and enhance the Company’s ability to quickly respond to market dynamics and competitive pressures.

5. Increased Investor Appeal

• Focused Strategy: The Company believes that focusing on its core SaaS business will create a more streamlined, easier-to-analyze company for investors.

This asset divestiture represents a significant step toward positioning iCoreConnect for sustained growth and long-term success in our core markets.