Magnomatics raise £2.5m for innovative eco motors
Magnomatics, the Sheffield based high technology company specialising in the development of innovative electro mechanical solutions, has successfully raised £2.5 million to further develop its revolutionary magnetically geared motors for the hybrid and electric vehicle market.
Magnomatics, which was spun out of The University of Sheffield in 2006, creates novel proprietary magnetic transmissions and ultra compact and efficient motors and generators for some of the world’s largest multinationals. The Company is active in a range of industries, including renewable energy, automotive, aerospace and defence.
The funding will enable the Company to complete the development of its magnetically geared motors for the burgeoning electric and hybrid vehicle market. The system offers the motor vehicle manufacturers a lighter, quieter, more efficient direct drive motor. It will also allow the Company to expand its global reach and reputation.
IP Group has invested £1.06m, Finance Yorkshire has provided match funding from its Equity Linked Fund, whilst Fusion IP invested £366k. The first tranche of funds, totalling £2.25m have been invested and the second tranche of £246k is dependent on certain milestones. When the full £2.5m funds are invested, Fusion IP’s shareholding will be 31%.
Chris Kirby, managing director of Magnomatics commented: “The investment will not only allow us to grow our team of internationally renowned experts, but will allow us to take our fully proven magnetic transmissions and ultra-efficient motors through to mature product offerings. We will also be able to vigorously pursue and progress our international opportunities, ensuring that our ground-breaking technology has real impact in a number of diverse national and international markets”.
David Baynes, CEO of Fusion IP commented: “This is a major funding for Magnomatics that will enable them to develop their novel magnetic transmissions and compact, ultra-efficient motors for key vehicle markets. Magnomatics has made major technological advances over the last two years and has an impressive list of development contracts with many of the world’s leading manufacturers. We look forward to working with the management team and new investors, as Magnomatics brings these novel systems to market.”
Andrew Burton of Finance Yorkshire commented: “This is a great example of Finance Yorkshire working alongside other investors to provide companies with the funding needed to help them expand. Magnomatics is a high-technology company which has turned ground-breaking research in Sheffield into a commercial enterprise, developing products and services for global customers. The strong management team has now been further enhanced with the addition of ex Ricardo Managing Director, Bob Allsopp, as a non executive director, giving further market knowledge to the team.”
Nick Goulding, hlw Keeble Hawson partner, said : “We have previously acted for Magnomatics and I am delighted at the way the Company has grown over the years. The investment was relatively complex given the number of parties involved and was successfully completed in a short timescale. The funding will assist Magnomatics to make further global inroads into the hybrid and electrical vehicle market and we look forward to supporting the company as it continues its growth.”