Epiris has announced that its portfolio company AXIO Group has agreed the sale of TechInsights, a leading intellectual property and technology services provider, to Oakley Capital. The sale, which is expected to complete in the next two weeks, is the seventh and final major realisation from AXIO’s portfolio and will conclude what has been an exceptional investment for Epiris and its investors.
Based on today’s exchange rates, Electra Private Equity would receive proceeds from AXIO of GBP26 million. The sale would increase the total cash proceeds received by Electra from its investment in AXIO to GBP455 million, equivalent to 5.0x original cost, and an IRR of 76%.
Oakley Capital Private Equity III will invest US$49.9 million in the business and will invest alongside Henry Elkington, the CEO of the current parent company (AXIO), who brings extensive experience in the industry and will become Chairman of TechInsights at completion. The company’s indirect contribution through its interest in Oakley’s Fund III is expected to be approximately GBP18.2 million (GBP/USD = 1.29).
Based in Ottawa, Canada, TechInsights is the global leader in intellectual property consulting, patent brokerage and technical reverse engineering. TechInsights helps patent owners maximize the value of their patents through portfolio assessment, advising on strategic options, licensing and litigation support. In 2016 the business was combined with Chipworks, the leader in the intellectual property and technology services market, creating the clear global leader in advanced technology intelligence and technology founded patent advisory services.
Alex Cooper-Evans, Partner at Epiris, said: “We are delighted to have agreed the final sale from the AXIO group of companies which will conclude what has been an outstanding investment for our investors, delivering an unlevered return of 5x cost and an IRR of 76%.
The AXIO investment is a terrific example of the Epiris strategy at work. We bought a complex group of assets before transforming them with a programme of strategic and operational focus as well as investment in organic and M&A-led growth. This created a portfolio of high-performance growth businesses which has proven to be extremely attractive to trade and financial buyers alike.
Henry Elkington and the rest of the AXIO management team have done an exceptional job in delivering this return and we look forward to finding another opportunity to work together.”
Henry Elkington, CEO of AXIO Group, said: “We are delighted to have brought this investment to a successful conclusion. I speak for the whole management team in saying that this outcome would not have been possible without Epiris, whose vision and support have been invaluable.”
Peter Dubens, Director of OCL, commented: “We are delighted to have reached agreement for an investment in a business of TechInsights’ quality and global reputation. We look forward to supporting Henry Elkington and the experienced management team in developing the business further, particularly by leveraging TechInsights unmatched know-how to grow the subscription and syndicated data product offering.”
ELTA / OCL : Epiris sells TechInsights to Oakley Capital