UK-based commercialisation firm IP Group is set to receive $30m from China-based internet company Beijing Galaxy World Group (Galaxy Group) as part of the former’s efforts to raise £207m ($264m).
The deal is expected to close no later than August 18 2017. Galaxy Group, founded in 2005, will look to cooperate with IP Group to identify co-investment opportunities and to explore collaborations in China and the UK.
Galaxy Group operates four distinct business units: an incubator and investment arm, a cloud computing, big data and artificial intelligence (AI) division, a fintech unit and a unit that helps companies integrate internet and other smart technologies into their processes.
Through its incubator arm, Galaxy Group has generated more than 200 startups to date across more than 20 sectors.
IP Group’s fundraising earlier attracted Singapore state-owned investment firm Temasek, Telstra Super, the superannuation fund for employees of telecoms firm Telstra, asset manager M&G, as well as existing shareholders Invesco, Woodford and Landsdowne.
The fundraising was announced at the same time as a takeover bid for commercialisation firm Touchstone Innovations and IP Group’s expansion into Australia and New Zealand.
Maodong Xu, chairman of Galaxy Group, said: “The strategic investment into IP Group marks an important step for Galaxy to build a global entrepreneurial growth network.
“The cooperation with IP Group would enable us to quickly introduce cutting-edge technological projects in fields including internet, big data and AI from global top universities and will, in the form of co-funding, help these projects be in shape for a strong foothold in China.
“In this way the world’s state-of-the-art research findings would be converted into technology products and applications so as to propel China’s industries to incorporate the Internet and smart technologies.”
