IP Group PLC (LSE:IPO) is set to realise a 485% return on its investment into Mike Lynch-backed fraud-detection group Featurespace following an acquisition by global payment giant Visa.
FTSE 250-listed IP Group will receive £134 million in cash following the acquisition, making for a bumper return from £22.9 million worth of investments over seven financing rounds.
Currently its largest shareholder, IP Group first invested in Featurespace in 2012.
Greg Smith, chief executive of IP Group, said: “Having supported Featurespace for over ten years, we are delighted with this record exit, which represents an excellent financial return for IP Group.
“Our congratulations go to Martina King, Dave Excell and the Featurespace team.
“This transaction, which follows the sales of Garrison this year and Wave Optics in 2021, further validates IP Group’s model and our expertise in identifying and supporting businesses to successful exits.”
Following British tech entrepreneur Mike Lynch’s tragic death in August, Featurespace stated: “It is a high statistical probability that Featurespace wouldn’t be a thriving technology company without Mike… Mike’s personal investment in Featurespace supported the development of an invention that has proved fundamental in the progress of AI.”