The group, which has several high profile investments in Yorkshire, announced the sale this morning in a deal which represents a return of circa 21x on the original investment cost.
Allinea, based in Warwick, is a leading provider of software tools for developing and optimising high performance computing applications.
Following a period of successful trading, Allinea then became one of the group’s original direct investments (‘Emerging Stars’) at the time Mercia floated on the Stock Exchange in December 2014.
Dr Mark Payton, CEO of Mercia Technologies PLC, said: “This planned divestment is a pleasing endorsement of Mercia’s Complete Capital Solution, showing how Mercia sources and invests in attractive investment opportunities at an early stage. Initially this is undertaken via the managed funds, subsequently scaling those assets through direct investment which have the potential, ultimately, to be acquired by top-tier buyers.
“The sale of Allinea to ARM is a testament to the value held within our investment portfolio and will enable Allinea to accelerate its development and reach within the growing high performance computing markets, as well as achieving greater exposure in adjacent segments such as machine learning.”