Innvotec-managed funds made their first investment into Solus in 2009 and first investments were made up to 2012.
The Company is a developer and provider of pathogen tests ie (listeria, salmonella, e-coli) in the food testing sector.
The new equity provided enabled the Company to develop and bring to market a new range of tests that enables food manufacturers to complete the necessary testing on product manufactured within 24 hours. A rapid advancement on prior elapsed times to obtain the necessary test results allowing manufacturers to ship product to customers more quickly and reduce stock held.
The tests developed by Solus rapidly gained global acceptance and brought the Company to the attention of Perkin Elmer Inc who acquired the Company in Summer 2019.
The return on the investment for Innvotec’s investors ranged from 17.5x for the earliest investors to 5x for the later investors.
Not all profitable exits happen within a prescribed timeframe. Scout 7 had been in a legacy Innvotec portfolio for several years before its sale to Perform Group and providing investors with a 3.75x return. Innvotec funds provided equity for the Company at both start-up and early-stage.
Scout 7 became and remains a leading provider of player data to the global professional football industry and numbers most of the world’s leading clubs as clients.
Opta Pro, a subsidiary of Perform Group, was a long term collaboration partner and Perform Group was a logical acquiror in a professional sports sector that is undergoing an “aggregation” play.
My Gravity was in the Innvotec portfolio for a year.
The Company was sold to Loyalty Angels, a competitor for a combination of shares in the acquirer and cash.
Based on the current valuation of Loyalty Angels, the return to investors is 2.5x.
The background to the business is payment linked Loyalty Cards which allows the payment cards to be securely linked to suppliers’ loyalty programmes.
The Agreement to sell Phagenesis to Nestec, a Swiss-registered, wholly-owned subsidiary of Nestle, provided for shareholders in Phagenesis to receive value for their shares based on Phagenesis meeting pre-agreed performance “milestones”, of which there are three.
Nestec specialises in the development and sale of specialist nutritional foods. The Phagenesis treatment allows stroke sufferers (especially those suffering from Dysphagia-the inability to swallow) to take on nutritional foodstuffs at an earlier stage in the recovery process than would otherwise be the case.
The acquisition of Phagenesis allows Nestec to provide both treatment and nutritional foods to sufferers of Dysphagia. Nestec were an earlyish shareholder in and loan provider to Phagenesis.
To date investors have received a 4.2x multiple on their cost and should all milestones be met, the multiple on cost will rise to 10x.
The Company is a pioneer in the field of pensions aggregation and was sold to Legal and General, an early adopter, in summer 2019.
Innvotec managed Funds invested in the Company in April 2016 and the Company was sold on the back of initial commercialisation with early users and a strong pipeline.
The return to Innvotec clients was 5.5x their cost.