Vela Technologies invests in EnSilica Limited

Vela Technologies invests in EnSilica Limited

LONDON, UK: Vela Technologies has invested £750,000 in EnSilica Limited, a leading fabless semiconductor design business focused on custom mixed signal Application Specific Integrated Circuits (ASICs), in the form of convertible loan notes, as part of a pre-IPO funding round being undertaken by EnSilica to raise up to £1.5 million.

Vela Technologies is an AIM-quoted investing company focused on early stage and pre-IPO disruptive technology investments.

EnSilica focuses on the design and supply of custom mixed signal ASICs to system companies and original equipment manufacturers, managing the manufacturing process end-to-end. The fabless mixed signal ASIC supply model is a proven scalable platform to deliver both growth and profitability.

EnSilica has ASICs developed or under development across the satellite communication, automotive, industrial and healthcare markets. Mixed signal and radio frequency ASICs play a key role in differentiating EnSilica’s customers’ products in these markets.

The funds raised will enable EnSilica to continue to support its existing client base alongside additional investment in new customer ASICs, the supply of which will support future revenue growth and profitability. The proceeds will also provide working capital to support EnSilica.

Unaudited accounts show that EnSilica generated revenue of £8.4 million and an adjusted EBITDA of £0.8 million in the year ended 31 May 2021; and that at 31 May 2021 EnSilica’s net assets were £3.9 million. According to unaudited management accounts, in the six months to 30 November 2021, EnSilica generated revenues of £7.3 million.

James Normand, Executive Director of Vela, commented: “EnSilica perfectly fits Vela’s criteria for investment. Its specialist expertise in the semiconductor field and in particular in Application Specific Integrated Circuits puts EnSilica firmly in the ‘disruptive technology’ space. Moreover, a public listing for its shares, which EnSilica expects to achieve in the first half of this year, and the terms attaching to Vela’s investment are attractive and provide the potential for meaningful gains for Vela as EnSilica puts its expansion plans into effect.”

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