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Augmentum Fintech sells stake in Dext at 30.5% return on investment

Source: Augmentum Fintech

Augmentum Fintech plc (LSE: AUGM) (the “Company” or “Augmentum”), the UK’s only publicly listed investment company focussing on the fintech sector, is pleased to announce two developments within its portfolio.

Disposal of holding in Dext

The Company has sold its holding in Dext (formerly Receiptbank), the UK-headquartered digital bookkeeping platform, to Hg, a leading global software investor, for £10.5 million.

Augmentum invested £7.5 million into Dext in January 2020 and the exit delivers an IRR of 30.5% on the investment. Augmentum’s holding in Dext was valued at the original cost of £7.5 million in the Company’s unaudited interim results to 30 September 2020.

Additional investment in Grover and conversion of CLNs

Augmentum has made a further follow on equity investment of €2 million (£1.7 million) into Grover, the German technology rentals platform. This investment combined with previous investments into €7 million of convertible loan notes, which have now been converted into equity, takes the Company’s participation in Grover’s €60 million Series B funding round to €9 million. This funding round implies a value of Augmentum’s holding in Grover of approximately £12.9 million, which would represent an uplift of approximately £3.2 million compared to the last reported valuation of £8.0 million.

This announcement does not constitute or describe an updated NAV of the Company.*

Tim Levene, CEO of Augmentum Fintech, said: “The disposal of our holding in Dext provides a good return on an investment held for such a short period. The further investment in Grover reflects our continued belief that technology subscription services are poised to become mainstream and follows Grover’s successful roll-out in the Netherlands and imminent expansion into Spain and North America.”

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