Investments rarely run without a hitch from start to finish, and so proved to be the case with Liquavista, the electronics display technology developer that span out from Philips Research Labs in Eindhoven in 2005.
Gimv and Amadeus Capital entered the business 2006 and launched ambitious expansion plans. All was on track, but then the economic crisis badly affected Liquavista’s market. Gimv helped to launch a restructuring, focusing the business on eReaders and bringing in a new CEO. Eventually a strong exit was achieved, to one of the world’s largest electronics businesses, in 2010.
Our investors have been impressed with the enormous interest in Liquavista from players in the smart mobile device industry.
Guy Demuynck CEO (at exit), Liquavista
What did the business need?
- Capital for research and development
- Board level improvements
- International capabilities
- Commercialisation skills
- Market entry strategy
How did private equity backing create lasting value?
- Investment in business across four rounds of financing
- Strengthening of board with staff capable of leading the operational business
- Office set up in China to concentrate on production and commercialisation
- Refocusing of strategy on eReaders during difficult period in the economic crisis
- Recruitment of new CEO to lead business
- Development of new, full-colour and video demos that made the business very attractive to acquirers
What outcomes did private equity investment achieve?
- Team grown from 20 to 60 in less than two years
- Sale achieved to Samsung Electronics, one of the world’s largest electronics businesses, who have kept the company operational in the Netherland
- Exit achieved positive result for Gimv investors in line with Gimv’s historic average