Fusion IP agrees £88m takeover offer
IP Group, the research commercialisation group, announced it has made an all share offer for Fusion IP, valuing the company at nearly £88m.
The offer values each Fusion IP share at 80.2 pence and the entire issued share capital of Fusion IP, the Sheffield-based AIM-listed business that invests in turning university research into viable businesses, at approximately £87.8m.
The offer represents a premium of around 27.4% to the closing price yesterday of 63.0 pence per Fusion IP share.
IP Group and Fusion IP said the offer represents an opportunity to create a stronger UK based IP commercialisation company with “greater critical mass”, which it believes will lead to enhanced value for the shareholder base of the enlarged group.
Separately, IP Group also announced today its intention to raise £75m through the issue of up to 45.4million shares at a price of 165 pence per share.
It said the offer for Fusion IP is not dependent on the fundraising.
Alan Aubrey, chief executive of IP Group, said: “Since acquiring an initial stake in Fusion IP in 2009, we have enjoyed an excellent relationship with the team and are delighted to have reached agreement to acquire Fusion IP in full. The acquisition is highly complementary to IP Group’s core business and will give the combined entity greater breadth of coverage, enabling us to access a wider pool of intellectual property as well as improve our service offering to existing and potential research institutions both in the UK and internationally.
“Both IP Group and Fusion IP have developed strong track records of building outstanding businesses based on intellectual property and we firmly believe that this transaction will enhance value for the shareholders of both organisations.”
David Baynes, chief executive of Fusion IP, said: “It is well recognised that IP Group has done a fantastic job in developing an innovative approach in the commercialisation of intellectual property as an asset class and we have very much enjoyed working with them since they first invested in Fusion IP in 2009.
“By becoming part of an enlarged group, I believe we will be able to better maximise the value of our growing portfolio and bring even more value to our university partners and shareholders and to the spin-out companies to whom we provide our capital and expertise. We very much look forward to it.”
