It’s not often in the Cambridge UK technology cluster that a property or infrastructure deal overshadows hi-tech or life science transactions but Kier Group has come up trumps in a busy April.
The property group’s $521 million rights issue to fund the acquisition of infrastructure specialist Mouchel was the top deal in value in the Cambridge UK business and technology cluster in another busy month.
It bumped up the April deals value locally to $1.554 billion. More significantly it took the 25-month total to $65.65bn in Business Weekly’s Cambridge Deals Digest – a monthly average of $2.62bn.
Several other major transactions are said to be in the pipeline that will nudge Cambridge to the £70bn landmark in the near future.
The Kier funding pays for Mouchel in cash and will wipe out the acquired company’s net debt. Mouchel provides advisory, design, project delivery and managed services to the highways and transportation, local government, property, emergency services, health, education and utilities markets in the UK, the Middle East and Australia. It is the leading provider of repair and maintenance services to the UK strategic road network.
Also in the world of property, Savills paid £40m ($61.3m) to acquire Smiths Gore to expand its rural business capabilities. Founded in 1847, Smiths Gore has operated as a partnership with 532 staff, across 31 UK offices and 14 estate offices, all of whom will transfer into Savills Rural Energy and Projects division or its Country Residential Agency business. Smiths Gore specialises in the management of rural property for private clients, institutions and the public sector. This complements Savills UK’s existing rural business which is mainly focused on private client and charitable sectors together with transactional advice.
Transatlantic deal of the month was undoubtedly GW Pharmaceuticals’ $179.2m raising of new cash on the US technology market, Nasdaq. The Cambridge company has built a portfolio of cannabis-based solutions to a range of diseases, including several forms of epilepsy, and is making great strides in the US.
Also with North America in mind, Sepura– the digital communications specialist – agreed to buy Spanish voice and datacoms company Teltronic for €127.5m ($144m).
The deal provides the business with a ready-made route into Latin America and the United States via Teltronic’s existing footprint and extends Sepura’s range of digital communications capabilities.
A month noted for its showers, April dripped a huge volume of smaller-value deals which nevertheless stacked up across a range of business sectors. Crowdfunding specialist SyndicateRoom launched its own massively oversubscribed fundraising on its site seeking £1.2m and – because of demand – was forced to put a £5k ceiling on individual investments in the round.
Cambridge product design innovator 42 Technology received a share of £2.2m to continue developing a novel concept for a new generation of passenger rolling stock for use on the UK rail network. The funding has been made available through ‘Tomorrow’s Train Design Today’ (TTDT), an international competition led by RSSB’s FutureRailway programme team in association with the Department for Transport. The consultancy’s winning concept is based on a flexible purpose carriage that can be quickly reconfigured to carry passengers or freight as required. When passenger occupancy levels are low, for example at off-peak times or when commuter trains have delivered their passengers and are returning to the suburbs, the seats can be automatically moved and stowed to allow room for freight. This novel approach will help ease road congestion by encouraging more freight onto the railways, while delivering additional revenues to the UK rail network in excess of £100m through more intensive use of rolling stock and without any significant increase in operating cost.
Cambridge debugging technology gamechanger Undo Software raised $2 million of growth capital through a new business model that hitches long-term funding to angel capital. Cambridge Innovation Capital, which backed the round, is urging early stage tech companies in the cluster to adopt the model to help them through their critical early years. This is the first time CIC has invested alongside Cambridge angels and senior investment director Victor Christou said the model would help to address the funding gap experienced by many early stage, potentially high growth companies.
Undo co-founder and CEO Greg Law said the company plans to use the investment to accelerate its expansion and “become a major global player.” Winner of the Disruptive technology category in the recent Business Weekly Awards, Undo produces debugging tools that could save the industry $81.1bn a year by ‘turning back time’ to find the origins of software problems. The $2m funding round also includes investment from high profile entrepreneurs Jaan Tallinn (co-founder of Skype) and Sir Peter Michael (founder of Classic FM).
Cambridge chip maker ARM Holdings ramped up its capabilities in the Internet of Things arena with a double acquisition in the US. It bought Wicentric in San Diego and Florida-based startup Sunrise Micro Devices (SMD) for undisclosed sums. Wicentric is a Bluetooth Smart stack and profile provider. Privately held, the California company’s software solutions focus on enabling the development of low-power wireless products. It says its technology suite enables creation of interoperable smart products and the link layer for silicon integration. SMD provides sub-one volt Bluetooth radio intellectual property.
Again privately held, SMD provides radio IP solutions including a pre-qualified, self-contained radio block and related firmware to simplify radio deployment. Central to all SMD radios is native sub-one volt operation. Operating below one volt enables the radio to run much longer on batteries or harvested energy. The IP of both companies will be integrated to form the ARM Cordio portfolio. This complement ARM’s existing processor and physical IP targeting end markets requiring low-power wireless communications such as the IoT. ARM says the Cordio portfolio is already available for licensing.
Cambridge-based Spectral Edge, a University of East Anglia spin-out, is seeking £100k crowdfunding cash on Kickstarter to commercialise a new smart HDMI adapter for colour blind TV viewers and gaming enthusiasts. The new adapter, branded Eye2TV, is said to enhance video content for the estimated four per cent of the world’s population that suffers from colour-blindness – making it easy to distinguish between red and green features and enabling on-screen objects to be easily distinguished. Serial entrepreneur Dr Robert Swann is chairman.
Healx, the Cambridge University startup helping to match potential cures to some of the world’s rarest diseases, closed a £300k seed round and lined up Science & Technology big-hitters to help steer the next phase of growth. Lead investors are serial life sciences entrepreneur and Cambridge angel Jonathan Milner – founder of Abcam – and San Francisco telecoms innovator Ronjon Nag, who co-founded and sold companies to BlackBerry and Motorola. The venture is equally funded by financial strategist David Fuller, biotech investor Ian Mackenzie and software manager Laurent Brisedoux.
Horizon Discovery CEO and serial entrepreneur Darrin Disley will become an independent non-executive director. Until Healx has a formal board he will act as an adviser to the young business. The highly respected biotech entrepreneur and drug development guru David Brown has agreed to become chairman.
Cambridge-based Congenica, a spin-out from The Wellcome Trust Sanger Institute, raised a further £2.2m with the completion of a Series A round of financing by Amadeus Capital Partners’ early stage funds and the company’s initial investor, Cambridge Innovation Capital. Congenica was launched in 2014 by six world-leading geneticists and bio-informaticians. It has developed a proprietary platform to screen whole genome sequence data to identify novel genetic mutations and to highlight those associated with inherited or acquired genetic disorders.
Food packaging firm Anson Packaging was sold to Danish company Faerch Plast. No sum was disclosed. Anson has been owned by the Dujardin family for 40 years. It is the UK’s leading independent manufacturer of high-quality rigid packaging solutions to the food industry. Faerch Plast specialises in optimised packaging solutions for ready meals, fresh meat and cold food and snacks. The corporate team at Cambridge-based international law firm Mills & Reeve, led by Anthony McGurk, acted for the shareholders of Avro Holdings, Anson’s parent company, on the sale.
Law firm Birketts and accountancy practice BDO advised the owners of Alstons (Upholstery) on the company's proposed sale to Thailand Carpet Manufacturing, which is listed on the Stock Exchange of Thailand. Alstons Upholstery is a fifth-generation family business based in Colchester and one of the largest family-owned manufacturers in the UK, supplying sofas to independent stores and well known multi-site upholstery retailers. Under the new owners the business will continue to operate from Colchester using the Alstons Upholstery name, with plans for new investment and expansion under the ongoing management team.