Epiris’ TechInsights combines with Chipworks Inc.

POSTED 02 June 2016

Electra Partners is pleased to announce that its portfolio company TechInsights, part of the AXIO Data Group, is combining with Chipworks Inc., a global leader in the intellectual property and technology services market. AXIO will be the majority shareholder in the combined company. Funding for the transaction was provided from a new acquisition finance facility. 

Founded in 1992 and based in Ottawa, Canada, Chipworks is an international leader in technology intelligence and technical support services for technology patent licensing. The combination with TechInsights will create the clear global leader in advanced technology intelligence and technology founded patent advisory services. 

Electra Partners invested £91 million in AXIO in April 2013. Following the realisations of JOC Group, Breakbulk and MIMS, AXIO comprises four market-leading information businesses providing critical information and tools. These are OAG, a global leader in aviation information and intelligence; Vidal Group, a leading European healthcare information provider; and TechInsights, the intellectual property and technology services business; and RISI, the leading information provider for the global forest products industry. Together these businesses have profits of over £20 million. 

Alex Cooper-Evans, Partner at Electra Partners, said: 

“We are delighted that TechInsights has completed this transaction. Our strategy for AXIO is to transform each business by developing the right long-term strategy and then delivering through operational improvement and M&A. The combination with Chipworks is the latest step in our implementation of this strategy with TechInsights. 

“To date the investment in AXIO has proved extremely successful, with total cash proceeds of £186 million or 2.1x original cost returned to Electra Private Equity PLC, while the remaining investments were valued at £160 million as at 31 March 2016 representing a further 1.7x cost.” 

Henry Elkington, CEO of AXIO Data Group, said: 

“This is a significant step in the development of TechInsights. The combination with Chipworks creates a unique database of detailed technical intelligence of electronics and integrated circuits, combined with an unmatched team of experts in the key technology disciplines, and in patent licensing and patent litigation best practice. The combined business has the scale to invest in the R&D required to develop new and richer products and services that meet the needs of a fast changing market.” 

Alex Fortescue, Alex Cooper-Evans and Sarah Williams are responsible for Electra’s investment in AXIO Data Group. 

This investment continues a busy start to Electra's financial year, which has seen realisations or agreements to sell of more than £400 million and new investments or commitments to invest of over £200 million. Realisations announced since October include the agreement to sell Kalle, the exits of Daler-Rowney, MIMS and Zensar Technologies and the proceeds from the refinancing of the Park Resorts Group at the time of its merger with Parkdean Holidays. New investments and commitments to invest include the buyouts of Photobox Group and Grainger Retirement Solutions, the acquisition of Bowlplex by The Original Bowling Company and investments in two CLOs. 

Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.

Ends 

For further information please contact: 

Andrew Honnor, Matthew Goodman, Matthieu Roussellier, Greenbrook Communications
+44 (0)20 7952 2000 

Nicholas Board and Andrew Kenny, Electra Partners
+44 (0)20 7306 3902 

Note to Editors: 

About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years' experience. During this time it invested in excess of £4.7 billion in over 200 deals. As at 31 March 2016, the firm had funds under management of £2 billion including capital available for investment of £400 million. 

Electra Partners’ flexible investment strategy allows it to invest broadly across the private equity market with a particular focus on Buyouts and Co-investments, Secondaries and Debt. In addition to this, its long-term capital base means it is not constrained by expiring investment periods or exit pressure driven by fund raising cycles and is therefore able to realise investments only when returns are maximised for its investors. 

The firm's major client is Electra Private Equity PLC (“Electra”), a private equity investment trust which has been listed on the London Stock Exchange since 1976. Electra’s long-term investment performance has been consistently superior to private equity and other benchmarks. Over the ten years to 31 March 2016, Electra has seen diluted NAV per share growth of 228%. This is more than seven times the NAV per share return of the Morningstar Private Equity Index (ex. Electra). It is also equivalent to a ten-year annualised return of 13%, in the upper part of Electra’s target range of 10-15% over the long-term. 

For further information please visit www.electrapartners.com. 

Electra Partners LLP is authorised and regulated by the Financial Conduct Authority. 

About AXIO Data Group
AXIO Data Group manages a portfolio of market-leading information businesses providing critical, and often industry-standard, information and tools. Operating in over 17 countries worldwide, the group’s brands include Vidal in the healthcare sector, TechInsights in the intellectual property sector, OAG in the global aviation sector and RISI in the forest products sector. 

For further information, please visit www.axiogroup.net