Close Technology & General VCT and Bamboo Investments, both managed by Close Venture Management have sold Cassium Technologies for a total consideration of £2.8m. This represents more than double the total amount invested by the funds since July 2002 and an exit IRR of 40%. Cassium has been acquired by Netstore Plc, a technology company quoted on the Alternative Investment Market.
The funds invested £1m in Cassium in July 2002 to fund the expansion of the business. A further investment of £0.25m was made in 2004 to provide working capital for growth. Cassium has more than doubled its revenues since 2002 and has established itself as a leading provider of technology services to the telecoms and financial services sectors.
Emil Gigov, CVM director, said: “This deal is an ideal illustration of CVM’s investment approach. We backed an entrepreneurial management team with a vision for growth. Over the last three years the company has become a leading provider of services in some of the fastest growing areas of the IT market. The sale of our investment realises a good return for our investors and follows several profitable exits in the last twelve months.”
CVM exits in the last year include Automotive Technik for £25m, the sale of Active Hotels for £90m and the flotation of Careforce on AIM.