Intelligent Ultrasound to sell Clinical AI unit

IP Group plc - Portfolio company Intelligent Ultrasound Group to sell its Clinical AI business to GE HealthCare for £40.5m

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), which invests in breakthrough science and innovation companies with the potential to create a better future for all, is delighted to note that portfolio company Intelligent Ultrasound Group plc ("Intelligent Ultrasound" or "the Company") has entered into a conditional sale and purchase agreement for the sale of its Clinical AI business to GE HealthCare for an enterprise value of £40.5m.

The proposed transaction values the Company's Clinical AI Business at 33.8 times full year 2023 revenues, a premium of 70.9% to Intelligent Ultrasound's closing share price yesterday. Following the sale, Intelligent Ultrasound will retain its simulation business, which generated total revenues of £10m in 2023.

In addition, Intelligent Ultrasound announced that its Board intends to make a material return of capital following a review of the growth potential and capital requirements of the post-transaction business. IP Group has an undiluted beneficial holding of 20.8% in Intelligent Ultrasound. In addition, the Group's EIS fund management business, Parkwalk, holds 11.0% of Intelligent Ultrasound.

Intelligent Ultrasound expects to make an announcement detailing the proposed use of funds and future strategic direction for the post-transaction business by the time of completion, which, dependent on the timing of the Regulatory Consents, is expected to be in September/October this year.

The transaction is subject to shareholder approval under AIM Rule 15, as well as confirmations from the Competition and Markets Authority under the Enterprise Act, and the Investment Security Unit under the National Security and Investment Act, that they do not oppose the transaction.