LONDON - IP Group plc (LSE:IPO), an investor in innovative science and technology companies, has confirmed the receipt of £119 million in initial cash proceeds from the sale of its portfolio company Featurespace Ltd to Visa (NYSE:V). This transaction marks a significant financial return for IP Group, which was the first institutional investor in Featurespace back in 2012.
The sale contributes to a successful year for IP Group, with cash proceeds from exits expected to reach £179 million by year-end, a substantial increase from the £38.6 million received in 2023. The company has decided to allocate £25 million from the Featurespace sale to its ongoing share buyback program, boosting the program's total to up to £70 million. Since the program's inception in December 2023, IP Group has repurchased 65 million shares, which is about 6% of the shares initially in issue, spending a total of £28.9 million.
Greg Smith, Chief Executive of IP Group, praised the Featurespace team for their success and highlighted the transaction as the largest exit to date for the company. Smith emphasized IP Group's role as a leading early-stage science investor in the UK and its commitment to generating shareholder value through the share buyback program.
IP Group's financial position remains strong, with gross cash and deposits reported at £173.4 million and holdings in listed companies valued at £159 million as of December 13, 2024. The company anticipates its gross cash and deposits to increase to £279 million after incorporating the Featurespace funds, which are expected to be received before the end of the year. These figures represent about 62% of the company's current market capitalization but only 29% of its last-published net asset value (NAV).
The Featurespace transaction was initially announced on September 26, 2024, with IP Group expecting to receive a total of £134 million for its holding. The £119 million received upon completion is part of this total, with an additional £15 million subject to deferral. The directors had anticipated that the sale would result in an increase of approximately £51 million to the Group's FY23 NAV, £37 million of which was recognized in the HY24 results.
This article is based on a press release statement and aims to report the facts surrounding the sale of Featurespace by IP Group and its financial implications.
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