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DocuSign acquiring Tern investee firm Seal Software
3rd Mar 2020 15:32
(Sharecast News) - Internet of things (IoT)-focussed investment company Tern announced on Tuesday that one of its portfolio companies, Seal Software Group, has been acquired by DocuSign.
The AIM-traded firm said DocuSign had agreed to buy Seal Software for a total consideration of $188m in cash, excluding the value of shares currently owned by DocuSign, subject to potential adjustments and regulatory approval of the sale.
Tern invested ?50,000 in Seal Software, and as at 30 June, that investment was valued at ?0.12m, with Tern holding less than 1% of Seal.
The proceeds to Tern from the sale are expected to be broadly in line with its valuation on the investment, which would realise an approximately-two times return on its original investment.
"The sale of Seal Software to DocuSign will provide our shareholders with a positive return on one of our earliest investments," said chief executive officer Al Sisto.
"Although the investment thesis for Tern today is different to that when we initially invested in Seal Software, insofar as we now seek to take larger stakes in our portfolio companies, it demonstrates management's ability to source technology growth companies with good potential for exit to market leading companies.
"We applaud the team at Seal Software and wish them success on this new journey."
At 1513 GMT, shares in Tern were up 15.49% at 7.94p.
The AIM-traded firm said DocuSign had agreed to buy Seal Software for a total consideration of $188m in cash, excluding the value of shares currently owned by DocuSign, subject to potential adjustments and regulatory approval of the sale.
Tern invested ?50,000 in Seal Software, and as at 30 June, that investment was valued at ?0.12m, with Tern holding less than 1% of Seal.
The proceeds to Tern from the sale are expected to be broadly in line with its valuation on the investment, which would realise an approximately-two times return on its original investment.
"The sale of Seal Software to DocuSign will provide our shareholders with a positive return on one of our earliest investments," said chief executive officer Al Sisto.
"Although the investment thesis for Tern today is different to that when we initially invested in Seal Software, insofar as we now seek to take larger stakes in our portfolio companies, it demonstrates management's ability to source technology growth companies with good potential for exit to market leading companies.
"We applaud the team at Seal Software and wish them success on this new journey."
At 1513 GMT, shares in Tern were up 15.49% at 7.94p.