FUSION IP, which turns university research into business, has increased its stake in its portfolio company Magnomatics.
After acquiring existing shares in Magnomatics, a University of Sheffield spin-out, for £384,860, Fusion IP now has a 39 per cent shareholding in the business, up from 31 per cent prior to the transaction, it announced yesterday.
Earlier this week it was announced that Magnomatics, which specialises in the development of green technologies, had been awarded £1m from the Regional Growth Fund (RGF) by the Sheffield City Region Local Enterprise Partnership (LEP).
The grant, along with almost £5m of investment from Magnomatics, will create at least 41 new jobs by early 2015, the company said.
David Baynes, chief executive of Fusion IP, which is also based in Sheffield, said: “We are delighted with progress by Magnomatics and to be able to increase back our stake in the business. We had been diluted by the Magnomatics’ £2.5m funding round last year, but the fundraising that Fusion completed in March of this year has provided us with the cash we require to return our stake to a more attractive level.”
Chris Kirby, managing director of Magnomatics, said: “The LEP’s RGF grant is helping our company transition its innovative products into production for use in electric vehicles, trains and ships around the world and is creating a number of new, highly skilled jobs at Magnomatics.”
Last year, Magnomatics secured £2.5m of funding to develop magnetically geared motors and generators for the hybrid and electric vehicle market.
Of this, £1.06m was provided by IP Group, which was matched by Finance Yorkshire. Fusion IP also invested £366,000 in the technology.