Foresight Group’s Foresght VCT (F1) has completed the successful sale of Simulity Labs Limited (Simulity) to ARM, a specialist semiconductor IP company.
F1 received circa GBP11.4m at completion and will receive up to GBP 0.3 million of deferred consideration after 12 months subject to certain conditions, implying a cash on cash return of circa 3x on the GBP4 million invested in October 2016, or an IRR of circa 400 per cent. 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) says: “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, adds: “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.”