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Private equity is the best place for Blue Prism

British investors often complain when home-grown tech companies are bought off the London market and delivered into the hands of private equity. That’s not the case with Blue Prism (PRSM). Earlier this year, the group’s largest investors led by Jupiter Asset Management suggested that the directors should begin looking for a buyer and, after a four month search, the robotics processing company has confirmed an all-cash offer which values the business at £1.1bn. 

Private equity is surely the best place for Blue Prism, which has been burning through cash at an alarming rate as it attempts to keep its technology relevant in the fast moving world of robotics. The company’s closest peers are US-based UiPath and Automation Anywhere, both of which have completed multiple private fundraising rounds which have allowed them to re-invest heavily in their technology. In 2020, UiPath invested £109m in research and development, equivalent to 18 per cent of its sales. Blue Prism invested just £17m or 12 per cent of its sales. 

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