IP Group PLC Acquisition (0203S)
December 16 2016 - 1:00AM
UK Regulatory
TIDMIPO
RNS Number : 0203S
IP Group PLC
16 December 2016
FOR RELEASE ON 16 December 2016
IP Group plc acquires Parkwalk, the UK's largest EIS growth fund
manager focused on university spin-outs
IP Group plc (LSE: IPO) ("IP Group" or "the Group"), the
developer of intellectual property-based businesses, is delighted
to announce that it has agreed to acquire Parkwalk Advisors Ltd
("Parkwalk"), the UK's leading university spin-out focused EIS fund
manager, for an initial consideration of GBP10m.
Founded in 2009, Parkwalk is the largest EIS growth fund manager
focused on university spin-outs, having raised over GBP100m to date
with the majority of funds coming from leading private wealth
platforms and having backed over 60 companies across its managed
funds since inception. In 2016 alone, Parkwalk committed over
GBP40m to UK university spin-outs and has been a long-term
co-investment partner of IP Group, having co-invested over GBP17m
in 14 investment rounds during 2015/2016. Parkwalk is a profitable
business and will be immediately accretive to IP Group's operating
results.
Parkwalk has significant assets under management, an experienced
team and strong links to many of IP Group's existing university
partners. Its investment vehicles include the evergreen Parkwalk
Opportunities Fund, the University of Cambridge Enterprise Funds,
the University of Oxford Innovation Funds and the University of
Bristol Enterprise Funds.
Parkwalk will retain its existing investment team and investment
decision-making independence post-acquisition.
Alan Aubrey, Chief Executive of IP Group, said: "Parkwalk is a
great strategic fit for IP Group being the market leader in the
sector with fast growing assets under management run by an
experienced team with an excellent track record. The acquisition
reinforces IP Group's access to a diversified pool of capital for
co-funding the earlier stages of the portfolio while providing a
profitable and growing platform to develop closer links with
institutional investment platforms. We consider EIS funds to be an
increasingly important source of financing for early-stage
technology companies and believe Parkwalk's strong links to leading
institutional wealth managers and university partners will be
beneficial to the Group."
Alastair Kilgour, Co-founder of Parkwalk, said: "The acquisition
of Parkwalk by IP Group gives our underlying investors the security
of being part of a larger organisation which also brings with it
specialist resources and expertise around developing businesses
formed around hard science. The strength of IP Group will allow
Parkwalk to expand and enhance its EIS fund offerings, helping to
boost the UK technology base and returns to investors."
The total maximum consideration payable for Parkwalk by IP Group
is GBP20m over a three-year period. The initial consideration
comprises GBP5.0m payable in cash, GBP2.5m payable in the form of
newly-issued IP Group ordinary shares and GBP2.5m of cash payable
in two equal tranches over two years, subject to certain
conditions. The remaining GBP10m consideration is payable as GBP5m
in cash and GBP5m in IP Group ordinary shares over a three-year
period, subject to Parkwalk achieving certain business performance
targets.
A change of controller application has been submitted to the
Financial Conduct Authority (the "FCA") and final completion of the
acquisition is conditional on approval being received from the FCA,
such approval being anticipated within a three-month period.
The information contained within this announcement constitutes
inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014.
For more information, please contact:
IP Group plc www.ipgroupplc.com
Alan Aubrey, Chief Executive
Officer +44 (0) 20 7444 0050
Greg Smith, Chief Financial
Officer +44 (0) 20 7444 0062/+44
Liz Vaughan-Adams, Communications (0) 7979 853802
Charlotte Street Partners
Andrew Wilson +44 (0) 7810 636995
Notes for editors
About IP Group
IP Group is a leading intellectual property commercialisation
company which focuses on evolving great ideas, mainly from its
partner universities, into world-changing businesses. The Group has
pioneered a unique approach to developing these ideas and the
resulting businesses by providing access to business building
expertise, capital (through its 100%-owned FCA-authorised
subsidiary IP Capital), networks, recruitment and business support.
IP Group has a strong track record of success and its portfolio
comprises holdings in approximately 80 early-stage to mature
businesses across four main sectors -- Biotech, Cleantech,
Healthcare and Technology. The Company is listed on the Main Market
of the London Stock Exchange under the code IPO.
For more information, please visit our website at
www.ipgroupplc.com.
About Parkwalk
Parkwalk is one of the UK's leading technology Enterprise
Investment Scheme fund managers. Parkwalk Funds invest in
high-growth, knowledge-intensive companies with a focus on
technology and innovation primarily sourced from UK universities.
Investments are made across the growth curve from early stage
through to AIM-listed. The firm also manages a series of
early-stage funds in conjunction with the technology transfer
offices of the Universities of Cambridge, Oxford and Bristol.
For more information, please visit our website at
www.parkwalkadvisors.com
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQFFAESIFMSELE
(END) Dow Jones Newswires
December 16, 2016 02:00 ET (07:00 GMT)
Ip (LSE:IPO)
Historical Stock Chart
From Apr 2024 to May 2024
Ip (LSE:IPO)
Historical Stock Chart
From May 2023 to May 2024