Electra Private Equity collects £26m from TechInsights sale

Electra Private Equity and its investment manager Epiris announced on Monday that its portfolio company AXIO Group has agreed the sale of intellectual property and technology services provider TechInsights to Oakley Capital.

The FTSE 250 company said the sale, which was expected to complete within a fortnight, was the seventh and final major realisation from AXIO's portfolio.

Based on Monday morning exchange rates, Electra Private Equity would receive proceeds from AXIO of £26m.

The sale would increase the total cash proceeds received by Electra from its investment in AXIO to £455m, equivalent to 5.0x original cost, with an internal rate of return of 76%.

“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%,” said Epiris partner Alex Cooper-Evans.

“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.”

Cooper-Evans said that created a portfolio of high-performance growth businesses which had proven to be “extremely attractive” to trade and financial buyers alike.

Henry Elkington, CEO of AXIO Group, said the company was “delighted” to have brought the 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,” Elkington added.

Based in Ottawa, Canada, Electra described TechInsights as the “global leader” in intellectual property consulting, patent brokerage and technical reverse engineering.

It said TechInsights helped 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, which Electra said was 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.