Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
Check out our straightforward definitions of common legal terms.
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Access our unrivalled global news content, business information and analytics solutions
Insurance, risk and compliance intelligence using big data, proprietary linking and advanced analytics.
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
Darktrace plc, a world-leading provider of artificial intelligence (AI), announced on 12 April 2021, its intention to float on the premium segment of the Main Market of the London Stock Exchange (LSE). With an estimated value of around £3bn, the IPO is likely to be a FTSE inclusion if successful and could signify a bounce back for the LSE after tech giant Deliveroo failed to meet expectations on its IPO earlier this month.
If Darktrace’s IPO does go ahead, it will contribute to the growing trend of flotations in the tech sector and represent a strong example of the types of companies which have thrived during the current global pandemic. Unlike other cyber security technology companies, the Cambridge-engineered platform gets to know its customer’s businesses and customer's ‘"normal" digital operating state’, which ultimately leads to neutralising threats across digital businesses. Darktrace is at the forefront of revolutionising cyber security stating in its registration document that ‘Approximately 74% of Darktrace’s trial deployments in 2020 detected serious vulnerabilities that very often had evaded other defences and quickly demonstrate to prospective customers the comprehensive nature of the AI driven technology.’
In a climate of COVID-19 and a fourth industrial revolution, Darktrace’s IPO comes at an optimal time for the business. With its tech expertise, Darktrace had already been able to help 4,700 customers, from Rolls-Royce to the NHS. Since the COVID-19 pandemic hit, its success continued to escalate with a 45.3% growth in revenue in 2020. Its business model has proven resilient due to its product offering, which on short notice was also able to assist its customers with the shift in working patterns and develop its C-sensor technology, to install onto customers’ employee laptops to mimic the AI driven protection and detection received in their office space.
In our Market Tracker trend update: IPOs in Q3 2020, we noted that since the dawn of the pandemic, there was a boom in IPOs in the e-commerce and tech industry. Notably, in 2020 we saw The Hut Group, which became the second biggest IPO by market capitalisation last year, and Guild Esports come to market, as well as Joint Stock Company Kaspi, which revived IPO plans that it had postponed almost a year before. This continued into 2021, with Moonpig, Dr. Martens and recently, Deliveroo listing on the Main Market of the LSE. As a retail bootmaker, Dr. Martens attributed its success to the growth in e-commerce facilitated by the pandemic, whilst tech companies Moonpig and Deliveroo were able build on their existing business model, which greatly benefitted from lockdown and site closures, and therefore from the boom in online shopping. These trends will be further explored in our upcoming Q1 2021 IPO update.
Deliveroo’s post-listing performance fell well below expectations following scrutiny by major investors over its business model in relation to the founder control afforded by its dual-class share structure, as well as working practices concerning its riders (see: Deliveroo pays the price for employment status of its riders). Amid a push to attract investment to London, the LSE cannot afford another unsuccessful float. However, attention has already been drawn to Darktrace’s shareholders, provoking questions over its choice to float on the London market as opposed to the US. The largest shareholder, Mike Lynch, with a 39.5% stake set to be worth almost £1.2bn at flotation, has been accused of fraudulently inflating the value of the company, Autonomy, which he co-founded and is currently fighting extradition to the US. Meanwhile, shareholder Sushovan Hussain, the former Autonomy finance chief, was sentenced to five years in a US prison for fraud relating to the HP deal in 2019. With already negative press surrounding the company, it is yet to be seen whether its business model is enough to attract investor attention and keep this IPO afloat.
Free trials are only available to individuals based in the UK
* denotes a required field
Market Tracker is a unique service for corporate lawyers housed within Lexis®PSL Corporate. It features a powerful transaction data analysis tool for accessing, analysing and comparing the specific features of corporate transactions, with a comprehensive and searchable library of deal documentation across 14 different deal types. The Market Tracker product also includes news and analysis of key corporate deals and activity and in-depth analysis of recent trends in corporate transactions.
0330 161 1234