XL TechGroup Media Analysis
The articles and media mentions of XL TechGroup, or XL, that mention capital in and returns for investors are generally positive. While the company itself reported losses over the years that are covered in this research, the media coverage at the time emphasized the ingenuity of XL's management approach, disruptive characteristics of the companies' technologies, and major partnerships that the spin-off companies had entered.
- BusinessWire reported the company's IPO announcement in 2004.
- The IPO was managed by Code Securities Limited and underwritten by Altium Capital Limited.
- XL TechGroup floated at 150p ($2.67 US) per share.
- The offering raised $40.3 million before expenses, resulting in a company valuation of $129.4 million.
The Secret to Reaching $400 M
- In 2005, London-based financial news company CityWire analyzed XL TechGroup's approach to starting new businesses.
- The method that the article describes includes maintaining at least 50% ownership of the new business using XL's funds and acquiring intellectual property from leaders in education and business.
- CityWire was cautious in declaring XL TechGroup's approach a success, claiming it was too early to tell. It pointed to the success of AgCert, one of XL's companies, as a gauge for how profitable XL's approach was.
Importance of Tech Transfer for Green Projects
- AUTM, a research non-profit, outlined TyraTech's path from inception to partnering with XL TechGroup.
- The article argues that technology transfer played a major role in advancing TyraTech's mission of delivering green pesticides to the global market.
- From the perspective of TyraTech's founder, Essam Enan, Ph. D., the experience was gratifying, as his innovation now could have real benefits to communities around the world.
- In 2007, when TyraTech went public, it had a $219 million market capitalization on the first day, before they even sold their first product.
Handling of AgCert 'Blip' in Production
- In October 2005, CityWire described XL TechGroup's handling of AgCert's production problems.
- The company's shares at the time were valued at more than twice their value at IPO.
- The article noted XL's unique approach to managing the businesses it creates: XL runs the companies for the first 18 months, adapting the strategy to the changing market conditions, and bringing their operational expertise to run their companies.
- In comparison with XL's $400 million valuation goal, it only spent $35 million on AgCert at the time. Even while dealing with production problems, XL still had plenty of margins to exit.
- CityWire concluded on a hopeful note, citing XL's track record and a high potential for its businesses.
- In August 2006, Orlando Business Journal reported on the major deals signed by several of XL TechGroup's companies.
- The article noted that XL reported $13 million in losses in 2005, which included the numbers from spin-off companies' performance. In light of these results, the key partnerships were crucial for XL goals.
- AgCert entered a joint venture with AES Corp., which committed to investing $325 million over five years.
- TyraTech signed three major deals with The Scotts Co, Syngenta Professional Products, and Arysta.
- The article reported the partnership between XL TechGroup and Boston-based GEN3 Partners Inc., which would allow XL to implement its new business growth model at a faster rate. The new venture was funded equally by the two partners, with a total of $4 million scheduled for two years.
We have analyzed the news and media sources that covered XL TechGroup's performance since its public offering. No coverage on return for investors was found, as the sources focused on capital in and market valuations. This could be explained by the fact that due to the high-risk nature of disruptive tech investment, the returns for investors could be delayed as the companies adjust to the unpredictability of markets for new, never-before-seen, technology.