Oakley Capital Investments Limited Acquisition of TechInsights (0695F)
15 May 2017 - 4:00PM
UK Regulatory
TIDMOCL
RNS Number : 0695F
Oakley Capital Investments Limited
15 May 2017
15 May 2017
Oakley Capital Investments Limited
Acquisition of TechInsights
Oakley Capital Investments Limited(1) (AIM:OCL, the "Company")
is pleased to announce that Oakley Capital Private Equity III(2)
("Fund III") has reached an agreement to acquire a majority stake
in TechInsights. Fund III is expected to invest US$49.9 million in
the business and will invest alongside Henry Elkington, the CEO of
the current parent company (AXIO), who brings extensive experience
in the industry and will become Chairman of TechInsights at
completion. The Company's indirect contribution through its
interest in Fund III is expected to be approximately GBP18.2
million (GBP/USD = 1.29).
TechInsights is a global leader in the intellectual property and
technology services market. The company has unparalleled
capabilities in semiconductor reverse engineering, which is used to
prove patent infringement and understand the technology behind
everyday consumer electronics. Its customers, including the top ten
semiconductor companies globally, rely on TechInsights' highly
skilled engineers and technical abilities, as well as its
proprietary database of technical intelligence. TechInsights'
specialised workforce, proprietary equipment and extensive
technical library create significant barriers to entry and
reinforce its position as the specialist of choice to provide
evidence of intellectual property use and competitive technical
intelligence.
The investment thesis includes leveraging TechInsights'
extensive, proprietary technology database to accelerate growth in
its subscription business, whilst maintaining its market leading
position in project-based patent licensing work. TechInsights will
be supported in further developing its subscription and syndicated
data products by leveraging Oakley Capital's experience in helping
businesses develop their recurring revenue streams.
Following the merger with its main competitor (ChipWorks) in
June 2016 TechInsights generated revenues of c. US$45 million and
EBITDA of US$12.6 million in 2016, on a pro-forma basis.
Peter Dubens, Director of OCL, commented:
"We are delighted to have reached agreement for an investment in
a business of TechInsights' quality and global reputation. We look
forward to supporting Henry Elkington and the experienced
management team in developing the business further, particularly by
leveraging TechInsights unmatched know-how to grow the subscription
and syndicated data product offering."
For further information please contact:
Oakley Capital Investments Limited
+44 20 7766 6900
Peter Dubens, Director
Steven Tredget, Investor Relations
FTI Consulting LLP
+44 20 3727 1000
Edward Bridges / Stephanie Ellis
Liberum Capital Limited (Nominated Adviser & Broker)
+44 20 3100 2000
Steve Pearce / Henry Freeman / Jill Li
(1) About Oakley Capital Investments Limited ("OCL")
Oakley Capital Investments Limited is a Bermudian company listed
on AIM. OCL seeks to provide investors with long term capital
appreciation through its investment in Oakley Capital Private
Equity L.P., Oakley Capital Private Equity II, Oakley Capital
Private Equity III and through co-investment opportunities.
(2) About Oakley Capital Private Equity L.P. ("Fund I"), Oakley
Capital Private Equity II ("Fund II") and Oakley Capital Private
Equity III ("Fund III")
Oakley Capital Private Equity L.P. and its successor funds,
Oakley Capital Private Equity II and Oakley Capital Private Equity
III, are unlisted mid-market private equity funds with the aim of
providing investors with significant long term capital
appreciation. The investment strategy of the funds is to focus on
buy-out opportunities in industries with the potential for growth,
consolidation and performance improvement.
This information is provided by RNS
The company news service from the London Stock Exchange
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