Venture Capital Specialists Midven follows £18M Allinea Exit with sale of Prolojik

 

Midlands’ leading “patient venture capital”firm ushers Allinea and Prolojik into new opportunities for success

Birmingham-based venture capital specialists Midven has completed successful exits from two West Midlands businesses.

The £18 million sale of Allinea to processor innovator ARM Group realised a 21 times return on investment after Midven sold its stake in the Warwick-based company. Midven invested in Allinea’s original team as a Warwick University spinout back in 2003.

Allinea is an industry leader in the development and performance analysis tools that maximise the efficiency of software for high performance computing (HPC) systems. Currently, 80 percent of the world’s top 25 supercomputers use Allinea’s tools, with key customers including the US Department of Energy, NASA, a range of supercomputing national labs and universities, and private companies using HPC systems for their own scientific computation.

With the Allinea acquisition, ARM will use its newly acquired capabilities, which complement its existing tools, to accelerate its adoption in HPC and meet computer workload demands being fuelled by machine learning and data analytics.

Allinea CEO David Lecomber said the sale had come at the right time.

“Midven has been a patient and supportive investor, enabling us to evolve to a point where we could command a strategic and beneficial price. We have found an excellent new home for Allinea’s team where we can take advantage of product synergies and be part of ARM’s long-term growth strategy in HPC,” he said.

Within the same month, Midven has also sold its stake in Prolojik, a leading lighting management provider who design, manufacture and deliver lighting control services to a number of organisations. Midven sold its stake in Prolojik back to the company’s management team, generating a return of three times its holding value. The transaction enabled the company to widen the equity ownership of the company to other members of the management team, positioning them for their next stage of growth.

Both Allinea and Prolojik were funded by Midven’s Advantage Growth Fund, a £17.5 million fund which established in 2003 to provide investment to high-growth start-ups and early stage businesses within the West Midlands. Midven has assisted its portfolio companies raise additional funding, over and above that invested by the Advantage Growth Fund, in excess of £65m to date.

In addition to Allinea and Prolojik, other notable Fund successes in growing businesses with strategic value include Scriptswitch which had a 36x return on investment (ROI); Dynamic Change with 8x ROI; and Midland Industrial Glass with 7x ROI.

Roger Wood, director at Midven, said:  “The exits in both Allinea and Prolojik add to Midven’s growing list of highly successful exits from its various fund portfolios. The outcomes are ultimately reward for the hard work of the management teams in driving their businesses to become market leaders. Being able to profitably exit both of these companies at the right time albeit in different ways to deliver successful outcomes for all parties is testament to the long-standing and collaborative relationships we develop with our portfolio companies.”

 

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