Safeguard Scientifics, Inc (NYSE:SFE) fell early Tuesday, after the company disclosed that its partner company, Propeller Health, has been acquired by ResMed for $225 million.
The company, based in Radnor, Pa., has been picked up by ResMed (NYSE: RMD) for $225 million in cash. Safeguard will receive total cash proceeds of $41.4 million, which excludes an amount of additional proceeds to be held in escrow, representing an approximate 3x cash-on-cash return and 34% IRR. Safeguard deployed $14.3 million in Propeller since August 2014 and had a 20% primary ownership position.
Said Safeguard CEO Brian Sisko "Our partner companies continue to gain real traction in their respective markets. Since we announced our strategy in January 2018, Safeguard has realized over $120 million in cash proceeds related to monetizations of our partner company interests."
"The Safeguard team remains committed to supporting our maturing portfolio, maximizing the overall value of our partner company holdings and monetizing such holdings, in both traditional and non-traditional ways, as opportunities arise."
Historically, Safeguard Scientifics has provided capital and relevant expertise to fuel the growth of technology-driven businesses. Safeguard has a distinguished track record of fostering innovation and building market leaders that spans more than six decades
Safeguard shares dipped two cents to $9.28, while those in RMD took on $1.11, or 1%, to $112.33
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