Mercia Technologies PLC Sale of Science Warehouse Limited (5041G)
March 02 2018 - 1:01AM
UK Regulatory
TIDMMERC
RNS Number : 5041G
Mercia Technologies PLC
02 March 2018
RNS 2 March 2018
Mercia Technologies PLC
("Mercia" or the "Group")
Sale of Science Warehouse Limited
Mercia Technologies PLC (AIM: MERC), the national investment
group focused on the funding and scaling of innovative technology
businesses with high growth potential from the UK regions, is
pleased to announce the profitable all cash sale of Science
Warehouse Limited ("Science Warehouse"), one of the Group's leading
direct investments, to Advanced Business Software and Solutions
Limited ("Advanced"), for a total cash consideration of
GBP16.9million.
Mercia will receive proceeds of GBP10.5million (net of
transaction expenses) and will recognise an immediate realised gain
of GBP0.6million, compared with the holding value of GBP9.9million
as at 30 September 2017. The sale represents a return to Mercia of
14.2% on its total investment cost of GBP9.2million.
Advanced is the third largest UK headquartered provider of
enterprise software and IT services to both the public and private
sectors in the United Kingdom, with clients including Harvey
Nichols, NHS Scotland, Sheffield Hallam University and Dart Group
Plc.
Established in 2000 and a spinout from the University of Leeds,
Science Warehouse is a provider of spend management and
eMarketplace systems to commercial, government, higher education,
NHS and housing customers. Its Cloud-based, Software-as-a-Service
technology, drives efficiencies through the procurement process for
both Buyers and Suppliers and the company also offers wider support
for Source-to-Settle solutions such as analytics, contract and
tender management.
Located since its formation in Yorkshire, one of Mercia's core
investment regions, Science Warehouse was the Group's largest
original direct investment ('Emerging Star') at the time of
Mercia's IPO in December 2014. In March 2015 Mercia made a further
investment, increasing its equity stake from 45.0% to 62.6%.
The cash proceeds received will be reinvested over time into
both the Group's existing and future 'Emerging Stars'.
Dr Mark Payton, CEO of Mercia Technologies PLC, said:
"This GBP10.5million cash divestment, the third since Mercia's
IPO in December 2014, is further evidence of the Group's ability to
grow businesses sourced from the UK regions and then crystallise
value for Mercia's shareholders. The sale of Science Warehouse for
an all cash consideration higher than the current carrying value is
strong evidence of Mercia's ability to generate profitable cash
returns from its proactive portfolio management and, I believe,
demonstrates the strength of our investment approach.
This cash exit from the Group's second largest direct investment
supports our belief that the Group's portfolio has the ability to
generate significant returns for shareholders over the medium term.
We continue to see high quality direct investment opportunities
through our fund management activities and the proceeds received
will be reinvested into both our existing and future direct
portfolio of Emerging Stars."
Philip Padfield, CEO of Science Warehouse, added:
"Science Warehouse has enjoyed strong growth since Mercia became
an investor in 2014 and has benefited from Mercia's active
investment strategy. Mercia's involvement has enabled Science
Warehouse to enhance its technology platform and effectively
consolidate and grow in our core markets whilst developing our
international presence, at the same time as strengthening our
management team and meeting our growth expectations. Mercia's
involvement has undoubtedly had a positive impact on the value and
scale of Science Warehouse."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information, please contact
Mercia Technologies PLC +44 (0)330 223 1430
Mark Payton, Chief Executive
Officer
Martin Glanfield, Chief Financial
Officer
www.merciatech.co.uk
Cenkos Securities plc +44 (0)20 7397 8900
Stephen Keys, Camilla Hume
(NOMAD and Joint Broker)
Canaccord Genuity Limited +44 (0)20 7523 8000
Simon Bridges, Emma Gabriel
(Joint Broker)
Buchanan +44 (0)20 7466 5000
Bobby Morse, Victoria Hayns,
Chris Lane, Stephanie Watson
www.buchanan.uk.com
About Mercia Technologies PLC
Mercia is a national investment group focused on the funding and
scaling of innovative technology businesses with high growth
potential from the UK regions. Mercia benefits from 19 university
partnerships and offices across the Midlands, the North of England
and Scotland providing it with access to high quality, regional
deal flow. Mercia Technologies PLC is quoted on AIM with the epic
"MERC".
Mercia's 'Complete Capital Solution' initially nurtures
businesses via its third party funds (now with circa
GBP350.0million under management following recent mandate wins) and
then over time Mercia can provide further funding to its 'Emerging
Stars' by deploying direct investment follow-on capital from its
own balance sheet. Since its IPO in December 2014, Mercia has
invested over GBP46.0million directly across its portfolio of
'Emerging Stars'.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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