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14 May 2007 07:13
Manager of Quester VCT plc acquired by NewMedia SPARK plc
14 May 2007, London - It was announced today that Quester, the leading early stage UK venture capital firm and manager of Quester VCT plc ("Quester VCT") has been acquired by NewMedia SPARK plc ("SPARK"), the AIM listed technology venture capital company focused on early stage investment (AIM: NMS).
Your board believes that the acquisition by SPARK will provide greater access to some of the UK's best early stage entrepreneurs and investment managers as well as broaden the investment opportunities available to the Quester managed funds and VCTs. The combined group has the potential to deliver enhanced long-term returns for our investors, additional investment opportunities, and a wider spread of investments. The board of Quester VCT met three potential acquirers of Quester and has held meetings with SPARK to discuss its plans for the future management of Quester VCT which will be carried forward on the existing basis.
Together, the combined group will manage funds of over ‚£275 million including the Quester Venture Partnership - an institutional fund, the three Quester managed VCT funds - Quester VCT, Quester VCT4 plc and Quester VCT5 plc, and University funds linked to nine universities including Oxford.
SPARK has a focus on new media, with a particular emphasis on digital media, software applications, technology and communications, which complements Quester's own activities in this area. Quester's strong healthcare business will be a platform for SPARK's new focus in this area.
SPARK's team specialising in early stage investment has been broadly the same for eight years. It changed its strategy in 2002 after the dramatic growth of SPARK in the previous three years, to focus solely on early stage investing and has achieved somewhat better returns than Quester since that date. In addition, SPARK has a strong balance sheet which should provide opportunities for access to new sources of capital. SPARK sees considerable benefit in acquiring Quester's expertise in managing third party funds.
Commenting on the acquisition, Andrew Holmes of Quester said:
"There is a great synergy between Quester and SPARK. SPARK will be working with Quester's team to maximise the value of Quester VCT's existing portfolio, to extend the breadth of investment opportunities and to utilise its VCT expertise. The deal brings together two compatible companies with common values and a track record of co-investment, including Footfall which was successfully sold to Experian in 2006. We believe that the acquisition will benefit both Quester's investors and its portfolio companies and we look forward to our future together."
Andrew Carruthers, Chief Executive of SPARK, said:
"We are pleased to be able to make this significant move in building upon our position in the investment community as one of the leading early-stage European venture investors by welcoming the Quester team. SPARK has demonstrated strong growth in net assets and a number of successful exits recently. We have co-invested with Quester a number of times over that period and see them as one of the few high quality participants in our sector. We plan to use this combined platform to build further funds under management and deliver long-term growth for all Quester's investors."
Enquiries:QuesterAndrew Holmes/ John Spooner020 7222 5472Capital MS&LAnnabel O'Connor07711 608747/ 020 7307 5339
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