IP Group Sells Minority Stakes in Nine Companies to Lexham Partners
Deal News | Dec 09, 2024 | Top Technology Ventures Ltd
IP Group plc, the UK-based science and innovation investor, has announced the secondary sale of minority holdings in nine of its portfolio companies to Lexham Partners, generating up to £15 million in cash proceeds. These sales are anticipated to be at a modest premium to the Group's HY24 balance sheet value. The funds from this transaction will bolster IP Group's share buyback initiative, potentially enhancing it to a total of £45 million. IP Group continues to hold approximately 90% ownership in each of the companies involved in the transaction, maintaining its commitment as informed shareholders. The Chief Executive, Greg Smith, commented on the deal as an affirmation of the company's portfolio quality and valuation strategy. Lexham Partners is keen to support these innovative companies alongside IP Group. This sale is part of IP Group's strategic approach to maximize shareholder value, with significant cash returns already generated this year, and further anticipated cash from upcoming transactions with companies like Featurespace. This financial maneuver aims to exploit what IP Group sees as an undervaluation in its current share prices.
Sectors
- Investment & Private Equity
- Science and Innovation
Geography
- United Kingdom – IP Group is a UK-based entity, and the transactions are involving British innovation companies.
Industry
- Investment & Private Equity – The article involves secondary sales of investment stakes, a common activity in private equity and venture capital sectors.
- Science and Innovation – IP Group focuses on investment in companies involved in deeptech, life sciences, and cleantech, emphasizing scientific breakthroughs and innovative technologies.
Financials
- £15 million – The expected cash proceeds from the sale of minority holdings in nine portfolio companies.
- £45 million – The total value of the share buyback program post-transaction.
- £57 million – Total cash proceeds from exits received by IP Group in the year to date.
- £26.7 million – Total cost of shares bought back since the share buyback program was announced in December 2023.
- £134 million – Anticipated cash proceeds from IP Group's holding in Featurespace, with £15 million subject to deferral.
- £176 million – Gross cash and deposits held by IP Group as of 30 November 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| IP Group plc | Vendor | Company | A UK-based investment firm focusing on early-stage science and innovation companies. |
| Lexham Partners | Buyer | Company | An investment firm specializing in growth and innovation, founded by Dominic Perks. |
| Greg Smith | Chief Executive of IP Group | Person | CEO of IP Group, responsible for overseeing the execution of the company's strategic initiatives, including this transaction. |
| Dominic Perks | Managing Partner of Lexham Partners | Person | Founder and managing partner, overseeing Lexham's strategy in investment and partnership development. |