Disposal of interest in Advanced Computer Software

RNS Number : 2466Q

Marwyn Value Investors Limited

10 October 2013

 



10 October 2013

Disposal of interest in Advanced Computer Software

Ordinary Shareholders of Marwyn Value Investors Limited

·     Final ACS disposal generates 5.9x aggregate cash return

·     ACS is the sixth public realisation for the Fund

·     IRR of 31.3% in respect of the Company's indirect investment in ACS

The Directors of Marwyn Value Investors Limited (the "Company") are pleased to announce that Marwyn Value Investors LP (the "Fund") has successfully sold its investment in Advanced Computer Software Plc ("ACS"), the healthcare software specialist.  Following a partial disposal in March 2013, this final disposal has generated net aggregate proceeds of £25.4m (of which £18.4 million is attributable to the Company), delivering 5.9x cash return in aggregate for the Company over the life of the investment.  This results in a gross IRR of 31.3% in respect of the Company's indirect investment in ACS.

ACS was created in 2008 with the acquisition of Adastra Software Limited by an acquisition company launched by the Company's Manager, Drury Lane Capital Plc, as a first step in the strategy to consolidate the fragmented healthcare software market, focusing on primary care.  Since that date the business has successfully integrated multiple acquisitions, including the recent strategic acquisition of Computer Software Holdings for £107.0 million in March this year.

ACS is the sixth public realisation from the Marwyn Value Investors Fund since 2006. Over this period the Company's Manager has founded a number of successful public businesses which have subsequently been acquired by third parties, including Talarius Plc, Inspicio Plc, Concateno Plc, Melorio Plc and Zetar Plc).

Announcing the sale, Mark Watts, a Managing Partner of the Company's Manager, said:

"We have been enormously pleased and grateful for Vin Murria and her team's immense hard work, dedication and success in building ACS into one of the UK's leading software businesses. We have enjoyed working with the team and are proud to have been involved in the formative phases of the Group's development. We wish Vin and her team the very best in the future.  ACS is another example of how the Fund's acquisition-led growth strategy and the hands-on operational and advisory support from the Company's Manager have created value for investors".

Enquiries

Robert Ware
Chairman
Marwyn Value Investors Limited
T: [phone]

NOTES:

The Company does not legally own interests in the underlying portfolio of the Fund; the returns reported above are calculated on an illustrative "look-through" basis and are based upon the Company's percentage interest in Fund net assets at any one time.

Since 2006, Marwyn Investment Management LLP has launched 13 acquisition companies, raising over £1.1 billion in equity, which in aggregate have delivered £772m in cash realisations for investors at an IRR of 30.2% to the Fund and third party public co-investors for the 7 years since the Fund's inception.  The on-going portfolio of businesses in which the Fund (and in which the ordinary share class of the Company indirectly invests in) was the founding investor and is a continuing supporter, includes Entertainment One Ltd, which has recently entered the FTSE 250, Breedon Aggregates Ltd, Silverdell Plc and Marwyn Management Partners Plc.

 

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