The combined entity will also offer a ‘placement service’, matching business angels with executive or non-executive positions in early-stage businesses.
Other offerings to investors include an assisted portfolio service, whereby a small number of screened investment opportunities will be presented each year, or the option of a fully managed fund of venture capital investments.
Under the terms of the acquisition, Envestors’ shareholders will receive six tranches of Braveheart shares over the next five years, subject to a maximum of £2.45 million. The number of shares to be issued will be based on Envestors’ contribution to group turnover, and all shares will be issued at 33.87p, a premium of 25 per cent over the share price on the day terms were agreed.
Geoffrey Thomson, chief executive of Braveheart, says the acquisition of Envestors will give the firm ‘greater geographical reach, including a bridgehead into the expatriate market’.
Oliver Woolley, MD of Envestors, comments, ‘The marriage with Braveheart creates a strong and positive combination in the early-stage venture capital market across the UK.’
Over the past three years, Envestors has helped 60 companies raise a total of £22 million. It was voted private investor network of the year at the Investor AllStars awards of 2009.
Scotland-headquartered Braveheart was founded in 1997 and invests in companies where there is the potential for significant growth through the commercialisation of intellectual property. It has 45 companies in its portfolio and has partnerships with four universities.
