Fusion IP plc (AIM: FIP), the university IP commercialisation company that turns world class research into business, is pleased to announce that Certara LP (“Certara”), a leading provider of drug discovery and development software and scientific consulting services, has agreed to acquire Fusion’s portfolio company, Simcyp Limited (“Simcyp”), for $32M.
Simcyp is a leading research-based company providing a modeling and simulation platform for predicting the fate of drugs in virtual populations, including pediatric populations. The transaction moves Simcyp into the Certara portfolio and further supports Certara’s emphasis on supporting translational science initiatives. The transaction is conditional only upon the completion of the drawdown of Certara’s acquisition funding. It is anticipated that this transaction will complete on 29 February 2012.
Fusion will receive approximately $6.4M in cash from the sale of its 20% shareholding in Simcyp, of which approximately 14% is being held in escrow for a period, as security for certain warranty and indemnity cover. The majority of the cash will be used to invest in a number of Fusion’s existing portfolio companies and for the creation of new portfolio companies from its exclusive university partnerships, in line with its business model.
In the financial year ended July 2011, Simcyp made £1.9M post-tax profit.
David Baynes, CEO of Fusion said:
“We are delighted to announce our first significant exit from our growing portfolio of companies. Simcyp is a world-class software company and the 200 fold return we have made on our investment amply demonstrates the excellence of our university pipeline agreements and the value that can be extracted from these exclusive relationships.”
Doug Liversidge CBE, Chairman of Fusion said:
“We would like to take this opportunity to thank the management and staff of Simcyp, who have built this excellent company since our first involvement in 2005. During this time, they increased profits and turnover in every year of our association with them and we wish them and the newly combined company every success for the future.“