REG - IP Group PLC - Visa to acquire portfolio company Featurespace

IPAnnouncement

26/09/2024 14:15

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RNS Number : 8581F  IP Group PLC  26 September 2024

 FOR RELEASE ON  26 September 2024

 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE UK
VERSION OF THE MARKET ABUSE REGULATION (EU NO. 596/2014) WHICH FORMS PART OF
ENGLISH LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED.

 

IP Group plc - Visa to acquire portfolio company Featurespace

 

IP Group to receive £134m cash; £51m uplift in NAV from 31 December 2023
valuation 1  (#_ftn1)

 

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), which invests in
breakthrough science and innovation companies with the potential to create a
better future for all, is pleased to announce that Visa has signed a
definitive agreement to acquire portfolio company Featurespace for an
undisclosed sum.

 

As a result, IP Group expects to receive £134m total cash for its holding in
Featurespace. Of this, £119m will be received on completion and £15m will be
subject to deferral, as is typical for an acquisition of this type. The
Directors anticipate that the transaction will result in an
increase from the Group's FY23 net asset value of approximately £51m(1)
(a 70% increase), of which £37m(1) was recognised in our HY24 results. This
further evidences the appropriateness of the Group's approach to portfolio
valuation. The transaction is subject to customary closing conditions,
including receipt of applicable regulatory approvals, and the Group will
provide a further update following completion.

 

The Group was the first institutional investor in Featurespace in 2012. It has
invested a total of £22.9m over seven financing rounds and is currently
Featurespace's largest shareholder.

 

Greg Smith, Chief Executive of IP Group, said: "Having supported Featurespace
for over ten years, we are delighted with this record exit, which represents
an excellent financial return for IP Group. Our congratulations go to Martina
King, Dave Excell and the Featurespace team. This transaction, which follows
the sales of Garrison this year and Wave Optics in 2021, further validates IP
Group's model and our expertise in identifying and supporting businesses to
successful exits."

 

As at 31 August 2024, IP Group had £183.7m gross cash and deposits while the
Group's holdings in listed companies were £128m, which together represented
approximately 76% of the Group's market capitalisation at that date.

 

( 1 ) Net of carried interest and deal costs

 

For more information, please contact:

 

 IP Group plc                       www.ipgroupplc.com
 Liz Vaughan-Adams, Communications  +44 (0) 20 7444 0062/+44 (0) 7967 312125
 Portland
 Alex Donaldson                     +44 (0) 7516 729702

 

Notes for editors

 

About IP Group

 

IP Group accelerates the impact of science for a better
future. As the most active UK based, early stage science investor, we
develop and support some of the world's most exciting businesses in
deeptech, life sciences and cleantech (led by Kiko Ventures). Through
Parkwalk, the UK's largest growth EIS fund manager, we also back
world-changing innovation emerging in leading universities and research
institutions. Our specialist investment team combines sector expertise with
an international approach. Together we have a strong track record of success,
having backed high-profile companies including Oxford Nanopore Technologies
plc, First Light Fusion, Hysata, and Oxa. IP Group is listed on the Main
Market of the London Stock Exchange under the code IPO. For more information,
please visit our website at www.ipgroupplc.com (http://www.ipgroupplc.com/) .

 

About Featurespace

Featurespace is a leader in enterprise technology that prevents fraud and
financial crime. With a mission to make the world a safer place to transact,
Featurespace helps banks and financial institutions protect customers,
reducing risk and business operating costs by providing industry-leading
machine learning, fraud & financial crime prevention solutions via its
award-winning platform.

Over 80 direct customers and 100,000 businesses have put their trust in
Featurespace's technology including HSBC, NatWest, TSYS, Worldpay, Danske
Bank, Akbank, Edenred and Permanent TSB. Founded in 2008, and headquartered in
Cambridge, UK, Featurespace has over 400 team members, operating globally from
six locations. Featurespace, backed by global investors including Chrysalis
Investments, Highland Europe, IP Group plc, Insight Partners, MissionOG, and
TTV Capital, has been at the forefront of developing technology to combat
fraud and financial crime worldwide. Learn more at featurespace.com.

ENDS

(#_ftnref1)

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