Direct Investments

Sale of Allinea Software Limited to ARM Limited

Mercia Technologies PLC has announced the sale of Allinea Software Limited to ARM Limited, the world’s leading semiconductor IP company, for a total cash consideration of up to £18.1million. The sale 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. This cash exit demonstrates how early-stage businesses can be effectively supported through Mercia’s ‘Complete Capital Solution’. In 2009, Mercia identified the investment opportunity and led the funding of a management buyout of Allinea from another University of Warwick spinout. Mercia’s third party managed funds provided early-stage investment and support. Following a period of successful trading, Allinea then became one of the Group’s original direct investments (‘Emerging Stars’) at the time of Mercia’s IPO in December 2014. Mercia’s direct holding increased from 6.9% at IPO, to 16.6% as at 30 September 2016 via its purchase of the Mercia Fund 2 investment portfolio in 2015.

To read the full RNS announcement, click here.