Listed VC NewMedia SPARK has sold portfolio company Pricerunner to Valueclick in the US for around $36m, of which $6m is subject to performance targets. This is the first exit from an early stage investment for NewMedia SPARK. At the interim results for the six months ended September 30, 2003, NewMedia SPARK’s investment in Pricerunner was valued at £1.1m. It acquired its 40.6% interest in Pricerunner when it acquired Cell Ventures of Sweden in March 2000. Since then it has invested a further £2.2m in the business alongside 3i, which acquired a 9.32% stake, TDC (13.83%) and Northzone Ventures (16.29%) as second round investors.
The business was launched by three entrepreneurs, Kristofer Arwin, Magnus Wiberg and Martin Alexandersson in December 1999 and provides an online comparison shopping service. The company achieved revenue growth of 80% last year.
NewMedia SPARK’s maximum net proceeds after the one year earn out period will be $14.4m depending on adjustments for the closing balance sheet, any warranty claims and transaction fees. Around $8.4m will be received in cash at closing.