Braveheart's cross-Border raid nets £1.31m Inkopo

Published on Monday 8 June 2009 21:43

BRAVEHEART, the angel investor, has bought a leading Yorkshire technology commercialisation group and revealed it is in talks with several rivals about further takeovers.

Perth-based Braveheart, which invests in early stage companies, has agreed to pay up to 1.31 million for Normanton-based Inkopo.

The acquired company manages the government-backed Viking Fund, which has invested in 27 early stage science and technology companies since 2004.

Braveheart chief executive Geoffrey Thomson claimed that, while the appetite for investing in early stage companies remained low because of the risk involved, it was a good time to consider buying companies.

Thomson commented: "At the moment it's a very good time to be looking at M&A (merger and acquisition] opportunities because the price reflects the market.

"We've got cash and we're looking to buy assets."

Thomson promised that Braveheart was looking at "a number" of other companies as possible acquisition targets.

Privately owned Inkopo was formed in 2002 as the result of the management buy-out of UniVentures, the commercialisation vehicle for Leeds Metropolitan University.

In addition to the Viking Fund, it also advises the Viking Business Angels Club, a network of 25 wealthy investors.

Thomson said Inkopo's management, led by chief executive Andrew Burton, were "the leading guys in Yorkshire" in the sector, but needed to be part of a larger group to develop the business.

"From their point of view they've probably taken the business as far as they could – they needed a bit more resource, cash and people to take it to the next level," he explained.

As well as broadening the portfolio of companies offered to the wealthy individuals who back Braveheart's and Inkopo's funds, Thomson said the Yorkshire company also offers business consultancy services needed by its own portfolio.

Of the 27 companies Inkopo has advised on investing in, one is now listed on the Aim, 12 have received follow-on investment from larger venture funds, one was taken over by management and four have failed.

Depending on Inkopo's performance over the next two years its owners will receive up to 1.31m, although the final cost to Braveheart could be less.

Excluding 75,000 paid in cash, the rest of the deal is in shares, based on a value of 39.2p each, a 33 per cent premium to the level they have traded at in recent weeks.

Based on the current level of Braveheart shares – unchanged at 29.5p last night – the deal is worth just over 1m.