Portfolio Update

RNS Number : 1797Y

Spark Ventures PLC

28 August 2009

 



SPARK Ventures realises its investment in Unanimis

28 August 2009 - SPARK Ventures plc ('SPARK') today announced that Unanimis, the UK's largest exclusive digital advertising network, has been acquired by Orange France Telecom Group.  SPARK will receive proceeds of up to £4.7 million, of which 50% is subject to earn out arrangements. In addition, SPARK will retain a stake in Open X, the world's leading independent advertisement server for web publishers, which was spun out from Unanimis in 2007.

SPARK invested £2.1 million in Unanimis in March 2007 and will make a 1.3x return on the initial consideration and proceeds to date, and will make up to a total 2.4x return if the full earn out arrangements are reached. The earn-out is payable in 2012 and is subject to certain profit and revenue targets. In addition, the retained stake in Open X is expected, in due course, to significantly enhance SPARK's total return on its investment in Unanimis.

SPARK recently returned 2p per share of surplus cash to shareholders and, at its EGM on the 7th of August, resolved to progressively realise its entire venture capital portfolio, which currently has a book value of more than 9p per share, over the next five years and return the proceeds to shareholders. In addition SPARK has cash and other assets of 3.5p per share. The proceeds from this latest realisation will, for the time being, be retained on SPARK's balance sheet, but will be returned to shareholders as soon as practically possible.

SPARK continues to believe that the current book value of its venture portfolio is conservative, and that it is strongly in shareholders' interests to realise these investments, which include stakes in a number of rapidly growing, profitable and valuable businesses, over time as opportunities arise to maximise the potential value of the portfolio. The Board expects that, in due course, the sale proceeds from such a strategy are likely to exceed substantially the proceeds that would result from a sale of the entire portfolio at its current book value. 

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For further information, please contact:

Jay Patel / Michael Whitaker (SPARK Ventures)
Tel: [phone]

Annabel O'Connor / Wendy Svirakova
Capital MS&L (for SPARK Ventures)
Tel: [phone]

Mob: [phone]

About SPARK Ventures:
SPARK Ventures is the leading quoted venture capital company in Europe managing £190 million on behalf of major institutional investors, leading UK universities, and two quoted venture capital trusts. 

SPARK and its managed funds have investments in dynamic businesses in the technology, media, telecoms and healthcare & life sciences sectors. As well as capital, it brings a wealth of experience of developing high growth companies from early stage through to IPO or trade sale, adding value to its investments through active support and strategic direction.

During the last five years Spark has sold several businesses to blue-chip trade buyers, in transactions worth over £250m, realising over £50m of cash. These trade buyers have included The Financial Times (Mergermarket), Qualcomm (Elata), Experian (Footfall), Ominiture (Touch Clarity), Ramboll (IMISoft), and Valueclick (Pricerunner). 

 

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