3rd Mar 2020 13:15
(Alliance News) - Investment firm Tern PLC on Tuesday said its investee company Seal Software Group Ltd has been acquired for USD188 million in cash by California-based DocuSign Inc.
Tern shares were 16% higher at 7.98 pence each on Tuesday afternoon in London.
Tern initially invested GBP50,000 in Seal, and at June 30, its investment was valued at GBP115,145. Tern has a nominal stake in Seal.
Tern said: "The proceeds to Tern from this sale are expected to be broadly in line with the company's valuation of its investment, which will realise an approximately two times return on Tern's original investment."
Chief Executive Officer Al Sisto added: "The sale of Seal Software to DocuSign will provide our shareholders with a positive return on one of our earliest investments.
"Although the investment thesis for Tern today is different to that when we initially invested in Seal Software, insofar as we now seek to take larger stakes in our portfolio companies, it demonstrates management's ability to source technology growth companies with good potential for exit to market leading companies."
By Eric Cunha; [email protected]
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