Fusion IP increases stake in Magnomatics

FUSION IP, the university commercialisation company, announced today it has increased its shareholding in its portfolio company Magnomatics.

Fusion IP has increased its share to 39% from 31% – the consideration for the stake was £384,860.

It was announced earlier this month that Magnomatics has been awarded a £1m Regional Growth Fund grant by the Sheffield City Region Local Enterprise Partnership, which will create a number of new jobs.

Magnomatics uses innovative technology to produce geared motors based on manipulating magnetic fields and was launched in 2006.

A clean technology company with a focus on energy efficiency and renewable energy, Magnomatics works across sectors including automotive, marine and aerospace.

David Baynes, chief executive of Fusion, 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.”

In 2012 Magnomatics secured £2.5m funding to develop magnetically geared motors and generators for the hybrid and electric vehicle market.

Of this, £1.06 million was provided by IP Group, which was matched by Finance Yorkshire. Fusion IP also invested £366,000 in the technology.