UK-based commercialisation firm IP Group is planning to raise £128m ($193m) on the back of strong growth throughout 2014.
The company has announced the issue of 56,888,888 capital raising shares at 225p per share. IP Group is planning to use the cash to expand its portfolio of companies and increase investment into its existing companies, provide capital to enable the development of technology coming out from its partner universities, and fund the continual expansion of the company into the US.
IP’s move into the US was one of the highlights of 2014 for the company following pilot commercialisation agreements with Princeton, Pennsylvania, and Columbia universities. IP has already started to develop its pipeline on the back of the US partnerships, with IP investing $1m into Pennsylvania drone aircraft spin-out Exyn Materials at the turn of the year. In the year ahead, the company will look to expand both its existing pipeline, as well as offer its commercialisation services to other US institutions.
The firm also expanded its net assets to £526m, building significant steam from its 2013 total of £337m. Its portfolio companies raised £200m in external funding, up from 2013’s total of £160m, and IP increased the capital provided to portfolio companies by 70%, rising from £27.5m to £46.8m, while increasing its portfolio of companies from 72 to 90. Much of this was accomplished with the help of a £100m equity raise in February last year.
Another big feather in the 2014 cap for IP group was the acquisition of Fusion IP, which offered commercialisation services to Sheffield, Cardiff, and Swansea universities. Expanding on its 20% stake, the company has now completed and fully integrated the firm into IP.
Alan Aubrey, CEO of IP Group, said: “Both the Group and its portfolio companies had a very active year in 2014. The equity fundraising in the first quarter of 2014, as well as that announced today, add further strength to the Group’s financial position and enable it to continue to significantly increase the rate of capital deployed into its portfolio companies.
“Furthermore, the Group has benefitted from the additional expertise and larger, more diversified portfolio that the acquisition of Fusion IP plc has brought to the business. Last year, we continued to expand into the US, through the formation of further partnerships, and we were delighted to complete our US first spin-out, from our partnership with the University of Pennsylvania, at the end of the year. The Group will continue to seek partnership and commercialisation opportunities both there and in the UK.”
