Acquisition of Quester
Manager of Quester VCT plc acquired by NewMedia SPARK plc
14 May 2007, London - It was announced today that Quester, the leading early
stage UK venture capital firm and manager of Quester VCT plc ("Quester VCT")
has been acquired by NewMedia SPARK plc ("SPARK"), the AIM listed technology
venture capital company focused on early stage investment (AIM: NMS).
Your board believes that the acquisition by SPARK will provide greater access
to some of the UK's best early stage entrepreneurs and investment managers as
well as broaden the investment opportunities available to the Quester managed
funds and VCTs. The combined group has the potential to deliver enhanced
long-term returns for our investors, additional investment opportunities, and a
wider spread of investments. The board of Quester VCT met three potential
acquirers of Quester and has held meetings with SPARK to discuss its plans for
the future management of Quester VCT which will be carried forward on the
existing basis.
Together, the combined group will manage funds of over £275 million including
the Quester Venture Partnership - an institutional fund, the three Quester
managed VCT funds - Quester VCT, Quester VCT4 plc and Quester VCT5 plc, and
University funds linked to nine universities including Oxford.
SPARK has a focus on new media, with a particular emphasis on digital media,
software applications, technology and communications, which complements
Quester's own activities in this area. Quester's strong healthcare business
will be a platform for SPARK's new focus in this area.
SPARK's team specialising in early stage investment has been broadly the same
for eight years. It changed its strategy in 2002 after the dramatic growth of
SPARK in the previous three years, to focus solely on early stage investing and
has achieved somewhat better returns than Quester since that date. In addition,
SPARK has a strong balance sheet which should provide opportunities for access
to new sources of capital. SPARK sees considerable benefit in acquiring
Quester's expertise in managing third party funds.
Commenting on the acquisition, Andrew Holmes of Quester said:
"There is a great synergy between Quester and SPARK. SPARK will be working with
Quester's team to maximise the value of Quester VCT's existing portfolio, to
extend the breadth of investment opportunities and to utilise its VCT
expertise. The deal brings together two compatible companies with common values
and a track record of co-investment, including Footfall which was successfully
sold to Experian in 2006. We believe that the acquisition will benefit both
Quester's investors and its portfolio companies and we look forward to our
future together."
Andrew Carruthers, Chief Executive of SPARK, said:
"We are pleased to be able to make this significant move in building upon our
position in the investment community as one of the leading early-stage European
venture investors by welcoming the Quester team. SPARK has demonstrated strong
growth in net assets and a number of successful exits recently. We have
co-invested with Quester a number of times over that period and see them as one
of the few high quality participants in our sector. We plan to use this
combined platform to build further funds under management and deliver long-term
growth for all Quester's investors."
Enquiries:
Quester
Andrew Holmes/ John Spooner
020 7222 5472
Capital MS&L
Annabel O'Connor
07711 608747/ 020 7307 5339
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