MedTech firm Cerus Endovascular has been acquired in a deal that that provides a 15x return for its North West investor.
Cerus, whose products – Contour and Neqstent – have been successful in treating brain aneurysms which can lead to strokes and even death, has previously been backed by the North West Fund.
The company’s products have been sold in Germany, Austria, the UK and the US, where Contour is undergoing trials to allow for a full launch.
Cerus relocated to the Liverpool City Region in 2013 at which point SPARK Impact (who have operationally merged with River Capital) made the first of two early-stage investments via the North West Fund for Biomedical followed by a second round of funding in 2014.
In 2015, Cerus expanded into California where they now operate from a 12,000 sq ft facility as well as offices in Oxford.
Mark Borzomato of SPARK Impact and CEO of River Capital, Neil Morrey Chief Operating Officer of The North West Fund and Marc d’Abbadie Head of Venture at SPARK Impact and River Capital.
The recent completion of the Stryker Corporation acquisition sees a substantial initial payment to the North West Fund for Biomedical with further payments expected across two years, subject to milestones.
River Capital and SPARK Impact portfolio director Jerry Mobbs said: “We are delighted that Stryker’s acquisition of Cerus has now been completed, securing a significant first payment for the North West Fund for Biomedical.
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“With further milestone payments expected, the fund is in line to receive a return on its initial investment in excess of 15x, which is a fantastic result for all involved.
“We now look forward to Stryker moving the business further forward and will watch its progress with great interest.”
River Capital and SPARK Impact Head of Venture Marc d’Abbadie said: “The River team extends its congratulations to everyone at Cerus and Stryker.
“Cerus’ products save lives. The company has also created high-value knowledge cconomy jobs and handsomely rewarded its early backers.
“The Cerus exit is a welcome reminder of the impact that early-stage regional seed investing can have.
“It is pleasing to see a new generation of regional seed funds, backed by the British Business Bank and others, currently being established, allowing UK innovation and entrepreneurship to flourish and follow in the footsteps of businesses like Cerus”