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28 Aug 2009 10:07
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SPARK Ventures realises its investment in Unanimis
28 August 2009Β -Β SPARK Ventures plc ("SPARK")Β todayΒ announcedΒ that Unanimis,Β theΒ UK's largest exclusive digital advertising network,Β has been acquired by Orange France Telecom Group.Β Β SPARKΒ will receive proceeds of up to Β£4.7Β million,Β of which 50% is subject to earn out arrangements. In addition, SPARK willΒ retain a stake in Open X, the world's leading independent advertisement server for web publishers, whichΒ was spun out from Unanimis in 2007.SPARKΒ invested Β£2.1Β millionΒ in Unanimis in March 2007 and will make a 1.3x return on the initial consideration and proceeds to date,Β and will make up to a total 2.4x return if the full earn out arrangements are reached. The earn-out is payable in 2012 and is subject to certain profit and revenue targets. In addition, the retained stake in Open XΒ is expected,Β in due course, toΒ significantly enhanceΒ SPARK's total return onΒ its investment inΒ Unanimis.SPARKΒ recently returned 2p per share of surplus cash to shareholders and, at itsΒ EGM on the 7th of August, resolvedΒ to progressivelyΒ realiseΒ itsΒ entireΒ venture capital portfolio,Β whichΒ currentlyΒ has a book value ofΒ more thanΒ 9p per share,Β over the nextΒ fiveΒ years and return the proceeds to shareholders.Β In addition SPARKΒ has cash and other assets of 3.5pΒ per share.Β The proceeds from this latestΒ realisationΒ will,Β for the time being,Β be retained onΒ SPARK's balance sheet, but will be returned to shareholdersΒ as soon as practically possible.SPARKΒ continues to believe that theΒ currentΒ book value of its venture portfolio is conservative, and thatΒ it is strongly in shareholders' interests to realise these investments,Β whichΒ includeΒ stakes in a number of rapidly growing, profitable and valuable businesses,Β over time as opportunities arise to maximiseΒ theΒ potentialΒ valueΒ of the portfolio.Β The BoardΒ expectsΒ that,Β in due course,Β the sale proceeds from such a strategy are likely to exceedΒ substantiallyΒ the proceedsΒ that would result from a sale of the entire portfolio at its currentΒ bookΒ value.Β
Ends
For further information, please contact: Jay Patel / Michael WhitakerΒ (SPARKΒ Ventures) Tel: +44Β (0)20Β 7851 7702 Annabel O'ConnorΒ / Wendy Svirakova Capital MS&L (for SPARK Ventures) Tel: +44Β (0)20 7307 5330
Mob: 07711 608 747 / 07904 931 202
About SPARK Ventures:SPARK Ventures is the leading quoted venture capital company in Europe managing Β£190 million on behalf of major institutional investors, leading UK universities, andΒ twoΒ quoted venture capital trusts.Β SPARKΒ and its managed funds have investments inΒ dynamic businesses in the technology, media, telecoms and healthcare & life sciences sectors. As well as capital, it brings a wealth of experience of developing high growth companies from early stage through to IPO or trade sale, adding value to its investments through active support and strategic direction. During the last five years Spark has sold several businesses to blue-chip trade buyers,Β in transactions worth over Β£250m,Β realising over Β£50m of cash. These trade buyers haveΒ includedΒ The Financial Times (Mergermarket), Qualcomm (Elata), Experian (Footfall), Ominiture (Touch Clarity), Ramboll (IMISoft), and Valueclick (Pricerunner).Β
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