Bank of Scotland acquires stake in Far Blue

07 May 2001

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Bank of Scotland has acquired a minority equity position in early-stage technology and management group Far Blue, in return for an undisclosed investment. According to Matthew Hudson, CEO of far Blue, the funds will be used for working capital and investment finance. With the BoS investment, Far Blue now counts six institutional investors amongst its backers, these include Friends Ivory & Sime Private Equity, Aberdeen Asset Management, New York based investment bank J & W Seligman, Brewin & Dolphin Bell Lawrie and Prudential Securities. The management and a number of family trusts hold the balance of Far Blueâ€™s equity. Hudson reports that a number of its backers have secured co-investment rights.

London-based Far Blue was founded in April 2000 and currently employs eight staff, although Hudson remarks that the headcount is expected to increase to 12 by the end of 2002. The company is currently seeking two fund managers â€“ one for its London office and one for a new location in Ireland. In addition to the London office, it also has operations in Cambridge and Glasgow. Far Blue invests in the data storage and transmission, networks, optoelectronics, telecoms, wireless and internet infrastructure, imaging and displays sectors.

The company will invest in early-stage businesses, although it will also provide seed finance for academic or corporate spin-outs, typically committing between Â£50,000 and Â£5m to each company.

Far Blue was founded and is managed by a team including Matthew Hudson, Peter Helfet, and Jeff Kinn. Martin Bowden of SJ Berwin provided legal advice during the companyâ€™s inception. In the current transaction, BoS was advised by Caroline Wilson of Dundas & Wilson in Edinburgh.