Last close As at 05/08/2026
GBP0.69
▲ 1.40 (2.08%)
Market capitalisation
GBP607m
Research: TMT
On 12 June IP Group announced that Garrison Technology, one of its key deeptech holdings, is being acquired by US-based cybersecurity company Everfox (formerly Forcepoint Federal), which has been Garrison’s partner for several years. IP Group highlighted that it would receive a cash consideration upon deal completion for its 23.6% stake in Garrison and that the valuation of Garrison implied by the deal will not result in any meaningful uplift to last carrying value. Based on this, we understand that IP Group will sell its stake at a price, which is broadly in line with the £31.6m fair value as at end-December 2023 (or c 2.7% of its end-2023 NAV). This is an indication of IP Group’s prudent approach to valuing the business (it had been valued in line with its £15.5m funding round in 2023). Further exits in line with or above last carrying value should assist a narrowing of the current wide discount to NAV of c 61%.
IP Group |
Sale of Garrison Technology to Everfox |
21 June 2024 |
Share price performance
Business description
Analysts
IP Group is a research client of Edison Investment Research Limited |
|||||||||||||||||||||||||||||||||
On 12 June IP Group announced that Garrison Technology, one of its key deeptech holdings, is being acquired by US-based cybersecurity company Everfox (formerly Forcepoint Federal), which has been Garrison’s partner for several years. IP Group highlighted that it would receive a cash consideration upon deal completion for its 23.6% stake in Garrison and that the valuation of Garrison implied by the deal will not result in any meaningful uplift to last carrying value. Based on this, we understand that IP Group will sell its stake at a price, which is broadly in line with the £31.6m fair value as at end-December 2023 (or c 2.7% of its end-2023 NAV). This is an indication of IP Group’s prudent approach to valuing the business (it had been valued in line with its £15.5m funding round in 2023). Further exits in line with or above last carrying value should assist a narrowing of the current wide discount to NAV of c 61%.
Company update |
Investment companies |
Period end |
Net cash* |
Portfolio fair value** (£m) |
NAV |
NAV/share |
Price/NAV |
06/22 |
191.6 |
1,266 |
1,414 |
136.7 |
(49) |
12/22 |
160.1 |
1,259 |
1,376 |
132.9 |
(58) |
06/23 |
111.7 |
1,276 |
1,314 |
126.7 |
(55) |
12/23 |
91.7 |
1,165 |
1,190 |
114.8 |
(49) |
Note: *Includes restricted cash but not funds held on behalf of Enterprise Investment Scheme/venture capital trust investors. **Portfolio fair value includes US platform and other LP interests. ***Based on share price at respective period ends.
As discussed in our October 2023 update note, Garrison Technology is a provider of a remote web browser and related hardware, allowing enterprises and government agencies to prevent local machines from accessing malicious data sources by keeping all activity in the cloud (by means of web isolation). Its solution is primarily aimed at protecting against ransomware and phishing attacks. In recent years, the company reported strong demand from government customers (especially in the UK and US), as well as solid growth across its key commercial accounts (eg Lloyds Banking Group). In its H123 report, IP Group highlighted the large and increasing presence of Garrison in the US.
Garrison’s revenues in the fiscal year to end-March 2023 reached around £20m after posting a four-year CAGR of 64% (including double-digit growth in the last financial year). IP Group gained exposure to Garrison through the acquisition of Touchstone Innovations in 2017 (which backed Garrison’s seed round in 2015). Overall, IP Group has invested £13.8m in Garrison to date, and the deal would imply a c 2.3x realised multiple on invested capital.
The transaction is subject to customary closing conditions, and IP Group expects it to close this summer.
|
|
Research: Healthcare
Basilea Pharmaceutica has announced an asset purchase agreement with the Glioblastoma Foundation for lisavanbulin (BAL101553), the remaining drug candidate from its oncology portfolio. Basilea’s other oncology assets were offloaded in 2022 (for initial consideration of CHF15m) following the company’s decision to right-size and focus exclusively on its anti-infectives franchise. Lisavanbulin is a tumour checkpoint controller and was being evaluated as a treatment for glioblastoma before Basilea decided to cease development following the strategic pivot. The initial purchase price is undisclosed, although Basilea will be eligible for a fixed double-digit share of any subsequent commercial partnerships.