ARM, paid £12m to acquire Simulity, an embedded communications, and related server-based applications.
Before its acquisition, Simulity was owned by private equity firm Foresight. It was only in Nov 2016 that Foresight had injected £4m in Simulity which followed the IoT connectivity company’s eight-fold increment in revenues leading up to 2016. At the time, Simulity had won over 45 customers from the mobile network operator industry.
Foresight, a venture capital firm having north of £2 billion of Assets under Management (AUM), was able to harvest a massive three-fold return in eight months of its investment in Simulity. However, it wouldn’t have been a safe bet if Foresight didn’t know a thing or two about the SIM market.
Prior to Simulity, the Foresight Group had also invested in Gemalto, the world’s largest manufacturer of SIM cards The Gemalto investment had returned “more than 30 times original investment,” notes the Foresight blog. The investment group injects between £1m and £5m in growth capital investments, management buy-ins and buyouts.
As for ARM, the company (Recently acquired itself by Softbank) has been expanding its presence in the IoT market. The chipmaker has acquired 10 startups including Simulity since Feb 2015.
“The institutional backing of Foresight allowed us to scale the business and continue to build our world leading team and technology, whilst also providing huge credibility in discussions with large global corporates,” said Stéphane Fund, founder and CEO Simulity.