Baltimore keeps its head above water - just

Baltimore Technologies has sold its content management arm, Content Technologies, in a £20.5m deal designed to shore up the troubled company's immediate future.

The Irish security specialist has been looking to sell the division since August after falling sales and market conditions saw Baltimore's stock price drop from a high of £13.75 to just 15p a share. The deal is £12m cash, the rest will be paid in shares.

British company Clearswift will pick up the content firm for just three per cent of the £700m Baltimore originally paid in September 2000.

Baltimore CEO, Bijan Khezri, said he was relieved to see the deal completed. An earlier agreement with Apax Partners collapsed after financial disagreements.

"The cash will contribute to our medium-term financing," Khezri told silicon.com. "It frees up a lot of resources - it's not easy preparing a company for sale and running it at the same time."

Khezri dismissed claims he'd had to sell the division at a bargain price. "When we bought Content Technologies for £700m it was an all share deal and at that time the stock market was much higher. It looks like a dramatic decrease but don't think that takes account of the market realities," he said.

The sale ensures Baltimore has enough cash for the next 12 months, but the company is pinning hopes of a long-term revival on its continued restructuring and improved operational efficiency.

Baltimore will also sell its hardware arm, which manufactures cryptography engines and VPN products.

"We'll certainly see business stabilising in the next quarter," Khezri added. "At the very least there'll be no continuation of the downward trend."

The company's battle to survive was dealt another blow last month when former CEO Fran Rooney said he would sue Baltimore for alleged disparaging comments made about him.