Published 3rd October 2016

Sale of Innovations portfolio company Permasense

Imperial Innovations Group plc (AIM: IVO, "Innovations", "the Group") announces that Emerson Electric a Fortune 500 company, has purchased its portfolio company Permasense Limited ('Permasense' or 'the Company').

An initial consideration of £30.6 million was paid in cash on completion. Further amounts of up to £10.0 million may be paid in addition, subject to the Permasense business achieving certain performance targets during the next 13 months. Innovations owned a 23.0% equity stake in Permasense on completion. As at 31 January 2016, this had a net investment carrying value of £1.8 million (after accounting for the revenue share). The initial consideration has generated net proceeds to Innovations of £3.7 million. In addition, an equal payment of £3.7 million will be distributed to Imperial College as revenue share.

Permasense is the world leader in the field of continuous integrity monitoring for the oil & gas production, refining and power industries, providing real-time data-to-desk measurement of fixed equipment wall thicknesses in inhospitable and inaccessible environments. The Company's non-intrusive integrity monitoring systems use proprietary sensor technology and wireless data delivery to continuously monitor pipes for metal loss from corrosion or erosion, and reliably deliver high integrity data even in the most difficult environments. Permasense's systems therefore help to minimise the risk of unplanned outage and improve safety by reducing inspection personnel exposure to hazards such as high temperature metalwork, or in elevated or offshore locations.

Emerson based in St. Louis, Missouri (USA), is a global leader in bringing technology and engineering together to provide innovative solutions for customers in industrial, commercial, and consumer markets around the world. Sales in fiscal 2015 were $22.3 billion.

Permasense was incorporated to develop and commercialise technology originally developed by Imperial College London and was co-founded by Innovations in 2008. Innovations' equity stake largely derives from early commercial support provided to the founders by Innovations' Technology Transfer Office, as well as from licensing the founding intellectual property. Permasense generated revenues, rapidly becoming self-financing, and hence did not require funding as part of the Group's investment portfolio. Innovations 'IP Equity' stake was acquired at nil cost and is subject to a revenue share that that will return 50% of its proceeds to Imperial College London.

Jon Edington, Director of Technology Ventures at Imperial Innovations, said:

"Permasense is a great example of Innovations working with Imperial College to commercialise IP and build ambitious and successful businesses.

"Emerson's global presence and financial strength will allow Permasense to further enhance its market leading position, broaden its international reach and invest in further product development."