Cinnober has sold a 60% stake in its market surveillance unit Irisium to KRM22, an investment vehicle created to undertake a roll up of software companies providing risk management tools to the capital markets industry.
Cinnober announced plans to hive off a stake in Irisium last month after reporting a slow start to the year and full-year 2017 losses of Skr97.6 million. Cinnober acquired the business, formerly known as Ancoa Software, in May last year after the company had filed for bankruptcy in 2016.
Irisum currently has 22 employees, 13 customers and a recurring revenue base of approximately £1 million.
KRM22, led by former former Ffastfill chairman Keith Todd, has raised £10.3 million from a float on London's Alternative Investment Market to make investments in businesses that are experiencing and struggling against scale-up challenges. As part of the IPO, Cinnober invested £1.2 million to purchase 1.2 million shares, representing an ownership stake of just over 9.7% in KRM22
Under the terms of the transaction, KRM22 is purchasing 60% of Irisium’s equity and debt from Cinnober for £2.571 million in cash. A further £600,000 may also be forthcoming should Irisium reach £2 million of annualised recurring revenue over the next year.