Imperial Innovations Group Regulatory News (IVO)

26 May 2015

Imperial Innovations Group plc

Divests its shares of Epigeum

Imperial Innovations Group plc (AIM: IVO, "Innovations", "the Group") announces the sale of its shares in e-learning portfolio company Epigeum Ltd. ("Epigeum" or "the Company") to Oxford University Press for £1.9 million in cash. Innovations owned a 17.8% equity stake in Epigeum, which was held in the books at a carrying value £0.5 million. The sale has therefore generated a gross profit on disposal of £1.4 million before revenue share (50%) with Imperial College London.

Epigeum is a provider of online courses designed to help universities and colleges to support their core activities in teaching, research, studying and leadership and management. The Company's courses are used by 230 Universities across 27 countries.

Oxford University Press is a department of the University of Oxford and the world's largest university press. It furthers the University's objective of excellence in research, scholarship, and education by publishing worldwide.

Epigeum was spun out of Imperial College London and co-founded by Innovations in 2006. Innovations' Technology Transfer team supported the founding academic and management team with business planning and setting up of the company. Epigeum then generated revenues, rapidly becoming self-financing, and hence did not require funding as part of the Group's investment portfolio. However, by virtue of being instrumental in setting up the business, Innovations held founding equity in the business on inception.

Tony Hickson, Managing Director Technology Transfer at Imperial Innovations, said:

"Epigeum is a great example of one of our many successful spin-outs from Imperial College that are able to grow with ambition, without receiving venture funding from the Group.

"Prior to this transaction, it was part of our Organic Growth portfolio of around 30 companies, where instead of investing, we provide on-going support to promote organic growth and revenue generation."

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Notes to editors

About Imperial Innovations - www.imperialinnovations.co.uk 

Imperial Innovations Group plc creates, builds and invests in pioneering technologies developed from the academic research within the 'Golden Triangle' broadly bounded by London, Cambridge and Oxford, which is home to the UK's four leading research-intensive universities.

This area is home to many new technology companies through its proximity to the academic communities of Imperial College London, the University of Cambridge, the University of Oxford and University College London, as well as other leading research institutions.

Imperial College London, the University of Cambridge, the University of Oxford and University College London collectively have research income of £1.4 billion per annum and are ranked as four of the top ten Universities in the world (source: QS World University Rankings 2014/15).

Innovations supports scientists and entrepreneurs in the commercialisation of their ideas through the licensing of intellectual property, by leading the formation of new companies, providing facilities in the early stages, providing investment and encouraging co-investment to accelerate development, providing operational expertise and recruiting high-calibre management teams. It also runs an incubator in London that is the initial home for many of its technology spin-outs.

Since admission of its shares to trading on AIM in 2006, Innovations has raised more than £346.0 million of equity from investors, which has enabled it to invest in some of the most exciting spin-outs to come out of UK academic research. In addition, the Group has a £30.0 million loan facility from the European Investment Bank (EIB) for investment in biotech and therapeutics businesses.

During the period from admission on AIM up until 31 January 2015, Innovations has invested a total of £198.3 million across its portfolio companies, which have raised collectively investment of £926.8 million rising to £1.0 billion including post period end investments and commitments.