IP Group has agreed to buy the 80 per cent stake it does not already own in Fusion IP for about £70m in stock.
The deal offers Fusion IP shareholders 0.446 IP Group shares for every share held, or a premium of about 27 per cent to the stock’s Wednesday close.
The deal values Fusion IP at 80.2p per share or about £87.8m.
IP Group currently owns a 20.1 per cent stake in Fusion IP, which commercialises intellectual property developed at universities and similar establishments.
Commenting on the Offer, Alan Aubrey, the chief executive of IP Group said: “Since acquiring an initial stake in Fusion IP in 2009, we have enjoyed an excellent relationship with the team and are delighted to have reached agreement to acquire Fusion IP in full. The acquisition is highly complementary to IP Group’s core business and will give the combined entity greater breadth of coverage, enabling us to access a wider pool of intellectual property as well as improve our service offering to existing and potential research institutions both in the UK and internationally. Both IP Group and Fusion IP have developed strong track records of building outstanding businesses based on intellectual property and we firmly believe that this transaction will enhance value for the shareholders of both organisations.”
David Baynes, chief executive of Fusion IP said: “It is well recognised that IP Group has done a fantastic job in developing an innovative approach in the commercialisation of intellectual property as an asset class and we have very much enjoyed working with them since they first invested in Fusion IP in 2009.
“By becoming part of an enlarged group, I believe we will be able to better maximise the value of our growing portfolio and bring even more value to our university partners and shareholders and to the spin-out companies to whom we provide our capital and expertise. We very much look forward to it.”