Molten snaps up Forward Partners in £41m London tech deal

Listed venture vehicle Molten has snapped up AIM-listed Forward Partners in a deal worth £41.4m, it has been announced.

Listed venture vehicle Molten has snapped up AIM-listed Forward Partners in a deal worth £41.4m, it has been announced.

The deal will see existing Molten and Forward Partners shareholders hold 91.2 per cent and 8.8 per cent of the enlarged group’s share capital, respectively.

In a statement on the London Stock Exchange, Molten said the deal represents approximately 7.3 per cent of Forward Partners’ closing share price of 33.5p.

Martin Davis, Molten chief executive, said the deal would “provide Molten with a broader and more diverse pipeline through access to Forward Partners’ early-stage deal flow opportunities in fast-growing sub-sectors like applied AI and digital marketplaces.”

The announcement will be a significant boost for the UK tech scene. A wider slump in the venture market has seen extended deal timelines, with new investments taking longer to complete amid ongoing macroeconomic instability and growing investor caution.

The value of Molten’s holdings slumped nearly £200m in the year to the end of March as high-growth tech firms were buffeted by the economic downturn.

Despite the macroeconomic headwinds, Forward Partners’ portfolio has seen strong recent momentum with an average revenue growth of 133 per cent across its top 15 core holdings, in the first half of 2023.

Nic Brisbourne, Forward Partners chief executive, said: “Over the last ten years, Forward Partners has built a strong and resilient portfolio and, despite the turbulent market, I’m pleased to note that growth remains strong and our companies remain a force for good in the world. This merger will provide the resources, support and time they need to fully realise their potential.”

Alongside the deal, Molten announced a proposed equity raise of £50m this morning through a pre-emptive placing, which it said would significantly improve the funding of the enlarged Molten Group. Forward Partners’ largest shareholder Blackrock, will subscribe for up to £25m of placing shares, the statement added.

Molten is one of Europe’s leading venture capital investors with a gross portfolio valued at over £1bn. Like Forward Partners, it invests across the UK and Europe in private high-growth technology companies, with a principal focus on enterprise software, consumer technology, hardware and deep tech.

The acquisition is subject to a vote from shareholders at the Forward Partners general meeting later in the year.