Codeplay is one of the UK’s leading providers of solutions for the semiconductor industry, accelerating the performance of computer chips that run Artificial Intelligence (AI) and other high-performance software.

The transaction will generate approximate gross proceeds of £48 million to funds managed by Foresight Group, implying a 15.7x multiple on capital invested and an IRR of nearly 100% per annum.

Since Foresight 2018 investment, Codeplay has continued to develop a suite of high-performance software assets and is positioned at the centre of an increasingly important ecosystem that improves the performance of chips, used in both high performance and low-power environments; from supercomputers to self-driving cars. It has also developed its routes to market, selling its solutions to chip companies and downstream users, for example, to manufacturers of diagnostic healthcare equipment.

Chris Wardle, director at Foresight Group, said: “It has been an amazing journey to support and work with the Codeplay team over the past four years. It is a company at the forefront of UK technology innovation and with Foresight’s help, has become a key player in an ecosystem that will improve the performance and reduce the energy consumption of millions of computer chips, using open standards technologies.

“Since investment, Codeplay has developed better and more diverse technology solutions, expanded into new markets and now delivered this fantastic exit – a testament to the team. We wish them every success in the future.”

Foresight’s advisers on the transaction are Acuity Advisors as lead advisor and Edinburgh-based MBM Commercial and Boston-based Goodwin Procter as legal advisors.