Portfolio Update - Exit - Sale of portfolio company Codeplay Software
Foresight Enterprise VCT PLC
LEI: 213800MWJNR3WZZ3ZP42
Exit: Sale of portfolio company Codeplay Software to an undisclosed buyer delivers 15.7x cash-on-cash return for Foresight Enterprise VCT and other Foresight-managed funds
The Board of Foresight Enterprise VCT Plc (“FEVCT” 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 £4.7m to FEVCT, including funds to be released from escrow, implying a 15.7x multiple on capital of £0.3m invested in July 2018; equivalent to an IRR of 98% 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 70.8p as at 31 March 2022, to which the exit will add 0.4p, giving a pro forma NAV per ordinary share of 71.2.
Since FEVCT 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.
Raymond Abbott, Chair of Foresight Enterprise VCT said: “Codeplay is an innovative technology company that has built solutions that unlock billion-dollar markets. This fantastic exit for Foresight Enterprise VCT and its shareholders demonstrates our continued support for the brightest entrepreneurs the UK has to offer, and the vibrancy of the UK technology market and its people. We are delighted to have been able to help Andrew and team as they have grown the business over the past four years.”
For more information contact:
Gary Fraser, Foresight Group: 0203 667 8181
