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Portfolio Update – Exit – Sale of portfolio company Codeplay Software

Written by Customer Service on . Posted in Public Companies.

Foresight VCT PLC

LEI: 213800GNTY699WHACF46

Exit: Sale of portfolio company Codeplay Software to an undisclosed buyer delivers 15.7x cash-on-cash return for Foresight VCT and other Foresight-managed funds

The Board of Foresight VCT Plc (“FVCT” or the “Company”) is pleased to announce the sale, subject to regulatory approval, of portfolio company Codeplay Software Limited (“Codeplay”) to a US corporate buyer on 31 May 2022. Codeplay is one of the UK’s leading providers of solutions for the semiconductor industry, accelerating the performance of computer chips that run Artificial Intelligence and other high-performance software.

The transaction will generate approximate gross proceeds of £10.5m ($13.1m USD) to FVCT, including funds to be released from escrow, implying a more than 15x multiple on capital of £0.7m invested in July 2018; equivalent to an IRR of 97% per year. Overall the transaction will generate gross proceeds of £47.7m ($59.8m USD) across all funds managed by Foresight Group. The purchase price is in USD and so GBP proceeds may vary with the exchange rate between the exchange and completion dates. The transaction is subject to customary closing conditions, including regulatory approvals.

The Company’s NAV per ordinary share stood at 91.8p as at 31 March 2022, to which the exit will add 0.8p, giving a pro forma NAV per ordinary share of 92.6p.

Since FVCT made its original investment in 2018, Codeplay has continued to develop a suite of high-performance software assets and positioned itself at the centre of an increasingly important ecosystem that improves the performance of chips, used in both high performance and low-power environments; from supercomputers to self-driving cars. It has also developed its routes to market, selling its solutions not just to chip companies but also to downstream users, for example to manufacturers of diagnostic healthcare equipment.

Foresight has taken a proactive approach to supporting the exceptional senior management team, supporting strategic development and introducing key hires over the four years the two businesses have worked together.

Margaret Littlejohns, Chair of Foresight VCT said: “Codeplay has been a great success story for the Company and for our shareholders. It is a company at the forefront of UK technology innovation and with Foresight’s support, has become a key player in an ecosystem that will improve the performance and reduce the energy consumption of millions of computer chips.”

We are delighted that Foresight has been able to make such a positive contribution to the growth of the business, and we wish Codeplay every success for the future with the buyer.”

For more information contact:

Gary Fraser, Foresight Group: 0203 667 8181

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