Cardno Limited (ASX:CDD) has announced it has agreed to sell its software business XP Solutions for US$49 million to private equity firm EQT.

 

The company has indicated proceeds from the sale will go towards strengthening the company’s capital structure and reducing debt.

 

In addition, Cardno has also announced it has negotiated a permanent reduction in its debt facilities with its banking partners, of approximately US$100 million.

 

Despite the sale of XP Solutions, Cardno expects earnings for FY17 to remain challenged.

 

Cardno Limited reported a net loss of $176 million at 30 June 2016.