AXIO, the portfolio company backed by Epiris, a private equity fund manager, has sold TechInsights, an intellectual property and technology services provider, to Oakley Capital for £26 million. The sale is the seventh transaction from AXIO’s portfolio and concludes the investment by Epiris and its investors in the company.
The sale will increase the total cash proceeds received by Epiris from its investment in AXIO to £455 million, giving Epiris and its investors a 5x return on their initial investment and an IRR of 76%.
TechInsights, which is based in Canada, is an intellectual property consulting, patent brokerage and technical reverse engineering provider. It helps patent owners maximise the value of their patents through portfolio assessment, advising on strategic options, licensing and litigation support. In 2016 the business was combined with Chipworks, a provider of intellectual property and technology 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, 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."
Elkington will become chairman of TechInsights, which last year had a turnover of $45m and EBITDA of $12.6m.