Molten Ventures will offer £41.4 million of its own stock in exchange for Forward’s shares, valuing the company at 7.3 per cent less than its Friday market cap, or its price for most of the last month
VC fund Molten Ventures has agreed to buy rival Forward Partners in a deal to create a bigger London-based player in the startup funding scene, but at a discount compared to Forward’s closing share price before the deal.
Molten Ventures will offer £41.4 million of its own stock in exchange for Forward’s shares, valuing the company at 7.3 per cent less than its Friday market cap, or its price for most of the last month. It is above its average over the past three months, however.
The creation of a bigger player could be a boost to London’s Venture Capital scene.
Molten is motivated not just by shareholder returns but also by its role as a leader in the European ecosystem for supporting entrepreneurial firms – by making this acquisition, Molten is helping ensure that the portfolio firms will continue to be supported, Molten said.
Martin Davis, Chief Executive Officer of Molten said: We are pleased to be announcing the proposed acquisition of Forward Partners, with the unanimous recommendation of the Forward Partners Board. Forward Partners has a balanced and well-capitalised portfolio of 43 high-quality firms and, through combining our considerable resources, experience and networks, we will be even better placed both to support our existing portfolio firms and to capture attractive investment opportunities amid a buyer’s market for VC.
The deal would provide Molten with a wider and more diverse pipeline through access to Forward Partners’ early-stage deal flow opportunities in fast growing sub-sectors such as applied AI and digital marketplaces, and also acts as something of a homecoming for Forward Partners’ senior investment team, who are well known to us, and will bring expertise and an investment philosophy which chimes with our own in support of Europe’s most ambitious founders.
Commenting on the Acquisition, Nic Brisbourne, Chief Executive Officer of Forward Partners said: We are pleased to announce news of the offer from Molten today. Over the past ten years, Forward Partners has built a strong and resilient portfolio and, despite the turbulent market, I am pleased to note that growth remains strong and our firms remain a force for good in the world. This merger will provide the resources, support and time they need to fully realise their potential.
Brisbourne said: The Forward Partners board believes this proposal offers good value to our shareholders.