Foresight Group (“Foresight”) announces, on behalf of the Board of Foresight VCT plc (“F1”), that it has completed the successful sale of Simulity Labs Limited (“Simulity” or “the Company”) to ARM, the world’s leading semiconductor IP company.
- Foresight exits just eight months after investment from Foresight VCT
- £11.7m return on original £4m investment at IRR of c.400%
- Boost to Foresight VCT NAV up 3.8%
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F1 received c.£11.4m at completion and will receive up to £0.3m of deferred consideration after 12 months subject to certain conditions, implying a cash on cash return of c.3x on the £4m invested in October 2016, or an IRR of c.400%. NAV per ordinary share for F1 has consequentially increased 3.2p from March 2017, all other things being equal.
Simulity provides embedded operating system software and related server systems for SIM cards and embedded SIMs (‘eSIMs’), allowing Internet of Things (IoT) devices to securely connect to networks.
F1 invested in Simulity in October last year to support the Company’s strategic aims and management team led by Stéphane Fund. The Company has successfully transitioned its business model towards software licensing, launched into the IoT market with its eSIM technology and, operationally, increased staff numbers by 25%, with new international offices in South Africa and India to supplement existing offices in Northern Ireland and Wales.
James Livingston, Partner at Foresight and Director of Simulity (until completion) commented:
“We are delighted to have supported the management team at Simulity in the rapid growth and transition of their business, and successful sale. The vision of the management team and their deep market knowledge enabled them to develop pioneering technology which will be a key enabler of the IoT market”
Stéphane Fund, Founder and CEO of Simulity added:
“The institutional backing of Foresight allowed us to scale the business and continue to build our world leading team and technology, whilst also providing huge credibility in discussions with large global corporates. Foresight has worked closely with us, particularly during the exit process.”
For further information, please contact:
Ben Thompson, Foresight Group, firstname.lastname@example.org +44 (0)20 3667 8155
NOTES FOR EDITORS
About Foresight Group LLP ("Foresight”):
Foresight is a leading independent infrastructure and private equity investment manager which has been managing investment funds on behalf of institutions and retail clients for more than 30 years.
Foresight has £2.6 billion of Assets Under Management across a number of funds, including Listed Vehicles, Limited Partnerships, Enterprise Investment Schemes (EISs) and Venture Capital Trusts (VCTs).
Foresight’s Private Equity team, comprising eighteen investment professionals, invests typically between £1m and £5m in management buy-outs, management buy-ins and growth capital investments in UK SMEs.
Foresight was voted “VCT House of the Year” at the 2016 Unquote British Private Equity awards.
Established in 2009, Simulity is an established technology company that specialises in embedded communications and related server-based applications, connecting millions of devices, globally.