Kennet Partners Ltd ("Kennet"), a leading international growth equity firm focused on the technology sector, today announces the sale of its stake in portfolio company Chipidea Microelectronica S.A. ("Chipidea") to MIPS Technologies Inc. ("MIPS Technologies"). The sale was part of the acquisition of 100% of the shares in Chipidea by MIPS for $147m in cash plus an additional performance-based payment of up to 610,687 MIPS common shares.
Kennet invested in Chipidea in May 2005 when it led a €12 million financing of the business.
Chipidea is the world's leading independent supplier of analog and mixed signal intellectual property (IP) for the wireless, digital consumer and connectivity markets. The company licenses analog and mixed-signal technologies for use in a variety of end-user devices including digital media players and wireless handsets. Within the last five years, Chipidea has grown its customer base from 20 to more than 150 - including 13 of the world's top 15 semiconductor companies.
Chipidea had a number of characteristics which made it an ideal investment from Kennet's perspective. Kennet emphasizes capital efficiency in the companies it backs and Chipidea had a track record of growth that was largely self-financed prior to Kennet's investment. Kennet was Chipidea's first international institutional investor. In addition, the May 2005 financing blended both new capital for business expansion and the purchase of equity from existing shareholders - another Kennet hallmark.
Kennet Managing Director Michael Elias joined Chipidea's board at the time of the 2005 financing and remained a director of the company until it was acquired by MIPS.
Mr Elias said: "The acquisition of Chipidea by MIPS Technologies is a testament to the quality of its products, its team and the company's leading market position. Founders Jose Franca, Carlos Azeredo Leme and Joao Vital have done a terrific job building this business and I am certain that within MIPS Technologies, the company will continue to prosper."
Kennet Partners is a leading international private equity firm that invests in growth companies providing information technology products and business services that leverage technology. Kennet provides expansion capital to businesses that want to accelerate growth and build exceptional shareholder value in partnership with an experienced investor. Kennet Partners acts as an advisor to Kennet I, a Jersey-based fund and to Kennet II and Kennet III, both Guernsey-based funds. Kennet Partners is authorised and regulated by the Financial Services Authority.
For more information: www.kennet.com