27th Jun 2007 07:03
QinetiQ Group plc27 June 2007 QinetiQ Group plc27 June 2007 QinetiQ launches new technology venture fund in partnership with Coller Capital QinetiQ today announces the creation of a new technology venture fund (QinetiQVentures LP) to accelerate the development and realisation of seven of itsventure investments. The fund has been launched by QinetiQ and Coller Capital, aleading global investor in corporate venture assets. QinetiQ has established the new fund to drive faster growth from its ventureportfolio by creating an independent team with exclusive management focus andlong term capital commitment. The creation of the fund is expected to enhancevalue creation for the QinetiQ Group and is a logical step in thecommercialisation strategy which QinetiQ set out at IPO. The fund, which will be structured as a Limited Partnership ("LP") managed by anindependent Investment Manager, will have initial assets of £40m. QinetiQ andColler Capital will each contribute up to £20m of follow-on funding toaccelerate development of the fund's portfolio companies. Depending on theperformance of the fund, QinetiQ will own up to 75 per cent of future economicvalue. The new fund's portfolio will comprise partial or wholly owned interests inseven venture assets. QinetiQ's core venture businesses - such as QinetiQAirport Technologies (with its Tarsier runway debris detection systems) and thehigh-sensitivity GPS business - will remain within QinetiQ's internal venturestructure. The creation of the new fund will free QinetiQ's existing venture team, led byHal Kruth (Chairman, QinetiQ Ventures) and Mike O'Connor (Managing Director,QinetiQ Ventures), to bring greater focus on incubating core businesses anddeveloping QinetiQ's pipeline of new commercial ventures. Stephen Lake will leave QinetiQ to become a managing partner of Cody GateVentures LLP, the Investment Manager of the new fund and will be joined in themanaging partner role by Michael Summers, a former Vice President of SRIInternational, based in Menlo Park, California. Collectively Michael and Stephenhave more than 55 years' experience in forming, accelerating the development ofand realising value from a wide range of early-stage technology ventures. Hal Kruth, Chairman of QinetiQ Ventures said: "The creation of QinetiQ VenturesLP reflects a continuing focus on enhancing QinetiQ's value creation fromcutting edge technologies. It enables us to accelerate value creation within ourexisting portfolio and provides a long-term model for scaling up our futureventuring activities. He added: "Coller Capital brings to the partnership not only additional capitalbut a wealth of experience in accelerating value creation from corporatetechnology venture portfolios. The new fund will allow us to focus QinetiQ'sinternal resources more effectively on creating a steady pipeline of additionalventure opportunities." Jeremy Coller, Chief Executive Officer of Coller Capital whose corporate ventureactivity includes British Telecom, Shell and Lucent said: "QinetiQ is a worldleader in cutting-edge defence and security technologies. Through this jointventure, we will help QinetiQ to make more money faster through an enhancedengagement with commercial markets." The assets to be transferred into QinetiQ Ventures LP at inception (andQinetiQ's interest in these businesses pre-transaction) are: • Aurix Limited - Real-time audio mining (88 per cent subsidiary) • Metalysis Limited - Manufacture of high value metals from low-cost oxides (16 per cent investment) • Omni-ID - Low cost passive RFID technology that works anywhere (100 per cent owned) • QinetiQ Nanomaterials Limited (QNL) - Nanomaterials IP creation, design and manufacturing (100 per cent subsidiary) • Quintel Technology Limited - Next generation antenna systems for mobile networks (50 per cent joint venture) • Stingray Geophysical Limited - 4D sea bed reservoir monitoring systems (19.9 per cent investment) • ZBD Displays Limited - Zero power point of purchase display solutions (31.6 per cent investment) Completion of the transaction is expected by the end of July 2007 and isconditional upon the transfer of certain of the Ventures' assets into the fund.The LP will be accounted for as a joint venture by QinetiQ using the equitymethod of accounting. Cody Gate Ventures LLP, the Investment Manager of thefund, is in the process of obtaining final FSA Authorisation. QinetiQ is also hosting an investor and analyst site visit at its Malvern sitetoday. The visit will be hosted by Graham Love, Group Chief Executive. Forthose attending the site visit a presentation about this transaction will be given at 12.45pm as part of the site visit. This presentation will be broadcastvia a teleconference facility for analysts and investors not at the event andcan be accessed by dialling +44 (0) 20 8322 3196, quoting 'QinetiQ' as the password. The presentation materials will be available on the QinetiQ websitewww.QinetiQ.com in advance of the teleconference. No other new trading or pricesensitive information will be disclosed during the site visit. Notes to Editors: About QinetiQ: QinetiQ (pronounced ki net ik as in 'kinetic energy') is a leading internationaldefence and security technology business that was formed in July 2001 from theUK Government's Defence Evaluation & Research Agency (DERA). QinetiQ hasapproximately 13,500 employees, who deliver technology-based services andexploit QinetiQ's strengths in technology research by selling systems solutions,products and licences to government and commercial customers in a spectrum ofdefence, security and related commercial markets. In February 2006, QinetiQ Group plc was listed on the London Stock Exchange(main market) and joined the FTSE250 in June 2006. In the year to 31 March2007, QinetiQ delivered a 17.4 per cent rise in underlying operating profitbefore tax to £106.0m on turnover which rose by 9.3 per cent to £1,149.5m. For further information see www.QinetiQ.com About Coller Capital: Coller Capital is the leading global investor in private equity secondaries andcorporate venture assets. The firm, founded in 1990, has approximately $8billion under management. It has positions in more than 200 private equity fundsand stakes in over 2,000 private companies worldwide, investing from $1 millionto $1 billion plus in individual transactions. Contacts: QinetiQ Investor Relations: Adrian Colman +44 (0)1252 395366; +44 (0)7740 432699QinetiQ press office: David Bishop, +44 (0) 1252 393500, [email protected],[email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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