Portfolio Update - Exit - Sale of portfolio company Codeplay Software
06 June 2022 - 9:45PM
Portfolio Update - Exit - Sale of portfolio company Codeplay
Software
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 £10.5m ($13.1m USD) to FVCT, including funds to be
released from escrow, implying a more than 15x multiple on capital
of £0.7m invested in July 2018; equivalent to an IRR of 97% per
year. Overall the transaction will generate gross proceeds of
£47.7m ($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
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