Foresight VCT PLC Portfolio Update - Exit - Sale Of Portfolio Company Codeplay Software
06 June 2022 - 9:45PM
UK Regulatory
TIDMFTV
Foresight VCT PLC
LEI: 213800GNTY699WHACF46
Exit: Sale of portfolio company Codeplay Software to an
undisclosed buyer delivers 15.7x cash-on-cash return for Foresight
VCT and other Foresight-managed funds
The Board of Foresight VCT Plc ("FVCT" 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
GBP10.5m ($13.1m USD) to FVCT, including funds to be released from
escrow, implying a more than 15x multiple on capital of GBP0.7m
invested in July 2018; equivalent to an IRR of 97% 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 91.8p as at 31
March 2022, to which the exit will add 0.8p, giving a pro forma NAV
per ordinary share of 92.6p.
Since FVCT 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.
Margaret Littlejohns, Chair of Foresight VCT said: "Codeplay has
been a great success story for the Company and for our
shareholders. It is a company at the forefront of UK technology
innovation and with Foresight's support, has become a key player in
an ecosystem that will improve the performance and reduce the
energy consumption of millions of computer chips."
We are delighted that Foresight has been able to make such a
positive contribution to the growth of the business, and we wish
Codeplay every success for the future with the buyer."
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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