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Incitia Ventures scores 2.25x return through T-VIPS merger

5 Nov 2012

Norwegian growth investor Incitia Ventures has made a 2.25 times multiple on its investment in video networking company T-VIPS by merging it with Herkules Capital-backed Nevion.

The firm has been the co-lead investor in T-VIPS alongside Northzone Ventures since 2005, and owned a 26 per cent stake at the time of the merger.

It said the combined company, which will be named Nevion, had combined 2012 revenues of about NOK330m ($57m).

The merger was structured as a cash and shares transaction.

Incitia Ventures partner Erik Sandersen said, “We did the first round investment in T-VIPS prior to the company having any revenues, and have participated in developing the company to a global niche leader and close to NOK100 ($17.4m) in revenues.”

“Now it was natural to determine the future strategic direction and we found that T-VIPS’ future potential best could be realized in a larger industrial setting.”

Nevion CEO Geir Bryn-Jensen said, “With the explosion in global media consumption and the growing need for broadcasters and service providers to deliver media content quickly on multiple platforms, the timing of our merger makes perfect sense.

“Now is the right time to profit from the rapid shift towards media networking over IP, deliver the new generation of optical transport and enable the emerging media delivery business models.“

Incitia has about NOK450m ($78m) of capital across two funds committed by Norwegian private equity investors.

It launched in 2001 and converted to a traditional closed-end fund model in 2007.

In April this year Incitia took a big bet on the nascent Nordic members-only online sales market by making an SEK20m ($3m) investment in Campadre Scandinavia.

Campadre is the leading members-only online private sales company in the Nordic region and operated from offices in Sweden.

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