Foresight 4 VCT Plc Portfolio Update - Exit - Sale Of Portfolio Company Codeplay Software
06 June 2022 - 9:45PM
UK Regulatory
TIDMFTF
Foresight Enterprise VCT PLC
LEI: 213800MWJNR3WZZ3ZP42
Exit: Sale of portfolio company Codeplay Software to an
undisclosed buyer delivers 15.7x cash-on-cash return for Foresight
Enterprise VCT and other Foresight-managed funds
The Board of Foresight Enterprise VCT Plc ("FEVCT" or the
"Company") is pleased to announce the sale, subject to regulatory
approval, of portfolio company Codeplay Software Limited
("Codeplay") to a US corporate buyer on 31 May 2022. Codeplay is
one of the UK's leading providers of solutions for the
semiconductor industry, accelerating the performance of computer
chips that run Artificial Intelligence and other high-performance
software.
The transaction will generate approximate gross proceeds of
GBP4.7m to FEVCT, including funds to be released from escrow,
implying a 15.7x multiple on capital of GBP0.3m invested in July
2018; equivalent to an IRR of 98% per year. Overall the transaction
will generate gross proceeds of GBP47.7m ($59.8m USD) across all
funds managed by Foresight Group. The purchase price is in USD and
so GBP proceeds may vary with the exchange rate between the
exchange and completion dates. The transaction is subject to
customary closing conditions, including regulatory approvals.
The Company's NAV per ordinary share stood at 70.8p as at 31
March 2022, to which the exit will add 0.4p, giving a pro forma NAV
per ordinary share of 71.2.
Since FEVCT made its original investment in 2018, Codeplay has
continued to develop a suite of high-performance software assets
and positioned itself at the centre of an increasingly important
ecosystem that improves the performance of chips, used in both high
performance and low-power environments; from supercomputers to
self-driving cars. It has also developed its routes to market,
selling its solutions not just to chip companies but also to
downstream users, for example to manufacturers of diagnostic
healthcare equipment.
Foresight has taken a proactive approach to supporting the
exceptional senior management team, supporting strategic
development and introducing key hires over the four years the two
businesses have worked together.
Raymond Abbott, Chair of Foresight Enterprise VCT said:
"Codeplay is an innovative technology company that has built
solutions that unlock billion-dollar markets. This fantastic exit
for Foresight Enterprise VCT and its shareholders demonstrates our
continued support for the brightest entrepreneurs the UK has to
offer, and the vibrancy of the UK technology market and its people.
We are delighted to have been able to help Andrew and team as they
have grown the business over the past four years."
For more information contact:
Gary Fraser, Foresight Group: 0203 667 8181
(END) Dow Jones Newswires
June 06, 2022 07:45 ET (11:45 GMT)
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