20 Feb 2019

Advising RealVNC on the management buyout of its automotive division

The challenge

RealVNC is a real Cambridge success story: a multi-award winning specialist in remote access, with over 90,000 business customers in 160 countries.

When RealVNC wanted to divest its automotive division so it could focus on its core business offering, it came to us for advice. This sale would involve splitting out a part of the wider business that had been joined for over 10 years. From the start, we needed to be clear how this could be achieved whilst protecting the integrity of the ongoing business. Accurate demarcation of retained, licenced and transferred intellectual property was vital.

Our support

Drawing on the expertise of our commercial technology team, and working closely with RealVNC management and technical teams, we brought clarity to a complex situation. We made a clear distinction between automotive-only IP that was to be transferred, and core IP that was to be retained, and in some cases licenced to the buyer.

Our tech know-how and commercial approach supported productive negotiations on the wider value and liability split between the retained business and the automotive division.  We also worked alongside the company to balance the light warranty/indemnity coverage typical of an MBO, with the comfort requirements of the buyer’s lender, HSBC.

Making great things happen

Both RealVNC and the buying entity VNC Automotive have welcomed the successful completion of the MBO.

Adam Greenwood-Byrne, CEO of RealVNC, has expressed how excited the RealVNC team is to support VNC Automotive on its own autonomous business trajectory with this MBO.  He also commented that RealVNC is now faster and more flexible than ever, and even bolder in its sales and engagement strategies.

For support with your business sale, buyout or other key transactions, please get in touch with Nick Palmer or Chris Keen.