Imperial Innovations has exited ICL spinout Permasense following its acquisition by Emerson Electric for $39m in upfront cash and up to an additional $12.8m in milestone payments.
Permasense, a UK-based developer of integrity monitoring systems for oil and gas production facilities, was acquired yesterday by electrical equipment corporation Emerson Electric for £30.6m ($39m) in cash.
The upfront payment may be followed by up to an additional £10m, subject to Permasense reaching certain milestones over the next 13 months.
The deal provided an exit to Imperial Innovations, the commercialisation firm set up by Imperial College London, which held a 23% stake.
Permasense was spun out of Imperial College London in 2008 and co-founded by Imperial Innovations. The company has developed continuous integrity monitoring for the oil and gas sector that detects metal loss from corrosion or erosion on pipes.
Imperial Innovations’ shares in the spinout are largely based on early commercial support through Innovations’ technology transfer office and from licensing the research to Permasense.
Permasense never raised external funding as it quickly generated revenues.
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.”
