Epiris is pleased to announce that its portfolio company AXIO Group (“AXIO”) has agreed the sale of TechInsights, a leading intellectual property and technology services provider, to Oakley Capital. The sale, which is expected to complete in the next two weeks, is the seventh and final major realisation from AXIO’s portfolio and will conclude what has been an exceptional investment for Epiris and its investors.
Based on today’s exchange rates, Electra Private Equity PLC (“Electra”) will receive proceeds from AXIO of £26 million. The sale will increase the total cash proceeds received by Electra from its investment in AXIO to £455 million, equivalent to 5.0x original cost, and an IRR of 76%.
Based in Ottawa, Canada, TechInsights is the global leader in intellectual property consulting, patent brokerage and technical reverse engineering. TechInsights helps patent owners maximize the value of their patents through portfolio assessment, advising on strategic options, licensing and litigation support. In 2016 the business was combined with Chipworks, the leader in the intellectual property and technology services market, creating the clear global leader in advanced technology intelligence and technology founded patent advisory services.
Alex Cooper-Evans, Partner at Epiris, said:
“We are delighted to have agreed the final sale from the AXIO group of companies which will conclude what has been an outstanding investment for our investors, delivering an unlevered return of 5x cost and an IRR of 76%.
"The AXIO investment is a terrific example of the Epiris strategy at work. We bought a complex group of assets before transforming them with a programme of strategic and operational focus as well as investment in organic and M&A-led growth. This created a portfolio of high-performance growth businesses which has proven to be extremely attractive to trade and financial buyers alike.
"Henry Elkington and the rest of the AXIO management team have done an exceptional job in delivering this return and we look forward to finding another opportunity to work together."
Henry Elkington, CEO of AXIO Group, said:
"We are delighted to have brought this investment to a successful conclusion. I speak for the whole management team in saying that this outcome would not have been possible without Epiris, whose vision and support have been invaluable."
Alex Fortescue and Alex Cooper-Evans are responsible for the investment in AXIO Group.
Epiris refers to Epiris Managers LLP acting on behalf of its clients, including Electra Private Equity PLC.
For further information please contact:
Andrew Honnor, Matthew Goodman, Matthieu Roussellier, Greenbrook Communications
+44 (0)20 7952 2000
Nicholas Board and Andrew Kenny, Epiris
+44 (0)20 7306 3902
Note to Editors:
Epiris is a top-decile private equity fund manager*.
Epiris, together with its predecessor firms, has managed the business and affairs of Electra Private Equity PLC, a listed private equity investment trust, for four decades. Epiris has also managed private equity investment programmes for pension funds, financial institutions and family offices. During this time Epiris has invested in excess of £5 billion in over 200 deals. Since 2011, Epiris has invested £1 billion in buyouts and co-investments and loan-to-own debt investments, in respect of which it has delivered a gross IRR of 38%**.
As at 30 September 2016, the firm had funds under management of £2.4 billion.
For further information please visit www.epiris.co.uk.
Issued by Epiris Managers LLP which is authorised and regulated by the Financial Conduct Authority.
* Refers to the 2009 and 2012 investment pools comprising Buyout & Co-investment, Secondary and Debt investments managed on behalf of Electra Private Equity PLC; comparator data supplied by Preqin.
** As at 30 September 2016 adjusted for subsequent investments and realisations. Gross IRR does not reflect adjustments for investment management and administration costs. Past performance is no guarantee of future results.
About AXIO Group
AXIO Group acquired a portfolio of seven market-leading information businesses providing critical, and often industry-standard, information and tools in 2013. Its approach has been to put in place the right long-term strategy for each of the businesses and then to deliver with operational improvement, growth investment and M&A. This transformative approach has resulted in its businesses becoming highly attractive to strategic and financial buyers. Following the sale of TechInsights, AXIO will have exited all of the seven businesses it acquired:
- JOC Group (provider of business intelligence, data and events for container shipping and logistics professionals): sold to IHS, Inc. in 2014;
- Breakbulk: (specialist logistic intelligence business): sold to ITE Group plc in 2014;
- MIMS (Asian healthcare information provider): sold to SMS and Mitsui in 2015;
- Vidal (European healthcare informatics and information systems business): sold to M3, Inc, in 2016;
- OAG (provider of flight schedules and status information and related analytical tools): sold to funds managed by Vitruvian Partners in 2017;
- RISI (provider of information for the global forest products industry): sold to Euromoney Institutional Investor in 2017;
- TechInsights (leading intellectual property services and technical intelligence provider): sale agreed to funds managed by Oakley Capital in 2017.
For further information, please visit www.axiogroup.net