Electra's Axio group merges IP division with Chipworks

The financing comes in the form of an acquisition finance facility arranged by Electra. Axio will become the majority shareholder in the newly merged company upon completion of the deal.

Electra said the investment in Axio has already generated £186m for listed vehicle Electra Private Equity (EPE), amounting to a 2.1x return. It also says the Axio group is currently valued at £160m, representing 1.7x cost.

The investment comes eight months after the portfolio company sold Mims to strategic buyers SMS and Mitsui for $250m, generating £95m in proceeds for Electra. The business has also divested JOC Group to US corporate buyer HIS, yielding £35m for the GP, and logistics intelligence unit Breakbulk to ITE Group.

The Axio group is now comprised of aviation consultancy OAG, European healthcare consultancy Vidal Group, forest-products-focused RISI and TechInsights.

EPE recently triggered the 12-month notice period for the termination of Electra's contract as investment portfolio manager. The move was announced as part of an ongoing strategic review set in motion by activist investor Edward Bramson in January.

Previous funding
Electra first invested in Axio in April 2013, when it carved out the business, then called UBM Data Services, from parent UBM. The £160m spinout was financed via £91m from Electra and a £40m PIK vendor loan.

Company
Ottawa-headquartered Chipworks was founded in 1992. Similarly to TechInsights, the business provides analysis on technology patent licensing and intellectual property.

People
Electra Partners – Alex Fortescue (managing partner); Alex Cooper-Evans (partner); Sarah Williams (investment director).
Axio – Henry Elkington (CEO).

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