Cambridge Cluster

Image by Getty Images via DaylifeBrothers Nico and Alex van Someren look like they will in for the final windfall from their raising of £110million at the height of the dot com boom nearly ten years ago for their company, nCipher.  Yes, it has taken nearly ten years to redistribute the bonanza from the investing shareholders to the other shareholders.  With the brothers and their family owning some 10% of nCipher, they must have collected a cool £11million between them – enough to buy some nice property in Cambridge I hope.

Two things to learn: first, if you are an investor always have redemption rights so you get your money back first (not possible if you invest in public offerings of course); second get in an experienced executive who has done it all before to sell the business.  The brothers have been trying for years to sell the nCipher but serial entrepreneur and racing driver accountant, Geoffrey Finlay has off-loaded the lot to Thales UK in just over twelve months in a very tidy deal.

NCipher makes a great case study and a real example of opportunism.  We all knew the market was at it’s peak but it takes a special type of brotherly love to close a deal.  Well done to the brothers – I am just glad that I did not subscribe at the flotation.