The latest equity investment deals in Welsh business

Here we feature the latest equity news in Wales.

The Welsh Government has made a £2m equity investment into tidal energy firm Inyanga Marine Energy Group. The funding will help test the firm’s improved tidal turbines in real sea conditions at the Morlais tidal energy site off Ynys Mon (Anglesey).

Inyanga’s new turbine technology could produce up to 60% more energy and power most of the tidal energy projects planned for the Morlais site.

The Welsh Government is investing into the Cornish headquartered business alongside £1.7m of private investment. It follows a £8m equity investment last September by the Welsh Government in Menter Môn Morlais, the company that operates and develops the Morlais tidal stream demonstration facility.

Asked why it was investing in an English-based firm, the Welsh Government said its devices will be based at Morlais and the company will be relocating the assembly of the turbines to Anglesey, which will support local jobs. It added that Inyanga’s turbines will be used by three of the four tidal stream developers that have secured space at Morlais.

Morlais is located in an area known for its strong tidal currents. The 35 square kilometre site has the potential to generate enough electricity to power over 180,000 homes once fully developed and is one of Europe’s largest consented tidal energy projects.

First Minister Eluned Morgan said: “This investment is a big step forward for Wales’ clean energy future. Tidal energy offers reliable, clean power and creates quality jobs in coastal communities where they’re needed most.

“By investing in innovation, we’re putting Wales at the forefront of marine energy technology. The improved turbines will explore making tidal energy more practical, helping speed up the global move away from fossil fuels.

“Following my visit to the international Wind Europe conference in Copenhagen last month, today’s investment shows how serious we are about renewable energy and its important role in meeting our future energy needs.”

Richard Parkinson, chief executive of Inyanga Marine Energy Group, said:“Our patented HydroWing tidal array technology is right at the forefront of developments in renewable energy, untapping the full potential of ocean tides as a perpetual and predictable source of energy. This significant £2m equity investment from the Welsh Government completes the financing for the demonstration phase of our ambitious technology.

“The tidal energy scheme at Morlais is the largest consented project of its type in the world, really putting Wales on the map as a global leader in renewable energy. Tidal energy has the potential to deliver 11% of the ��Ƶ’s total energy needs and today’s announcement is an important milestone on that journey.”

Andy Billcliff, chief executive of Menter Môn Morlais Ltd, said:“We are proud to see this significant milestone as Inyanga gears up to deploy their HydroWing demonstration project within the Morlais zone. It’s a major step not only for the tidal energy sector, but also for Anglesey and the wider Welsh economy.

“This development highlights the potential of our natural resources to drive innovation, create high-quality jobs and contribute meaningfully to achieving Wales’ net-zero ambitions. This is an exciting moment for renewable energy in Wales.”

Freight Logistics Solutions

The Development Bank of Wales has successfully exited from Torfaen-based Freight Logistics Solutions (FLS) four years after making a strategic £2.2m equity investment.

The exit comes as a result of FLS taking the opportunity to refinance with NatWest to back its next growth phase. The value of any return on investment for the development bank has not been disclosed.

The backing of the development bank supported the company to become one of the ��Ƶ’s leading providers of end-to-end supply chain solutions. FLS operates primarily within the ��Ƶ and EU road freight space.

Its chief executive, Ieuan Rosser, said: “As we embark on the next stage of our growth, the time was right to reflect on how the support of the development bank has helped us to build a strong foundation for the future.

“Their funding has allowed us to develop our technology, including the Freight hub Modular platform, and operational infrastructure to provide the platform for growth that will now enable us to further leverage our group offering and rapidly growing customer base from here in Torfaen.

“We are truly grateful for the support that we have had because without it, we wouldn’t be where we are today.

“Our future vision for FLS includes adding new dimensions to the service offering and planned ��Ƶ and European expansion.”

Mark Halliday from the Development Bank of Wales said: “Our equity investment in FLS has helped the team to drive business growth at a critical time for freight decarbonisation.

“They’ve come a long way in a short space of time and now have an excellent platform to deliver long-term sustainable growth and success. Furthermore, our return will be recycled for the benefit of new customers.”

Lumin Solutions

Lumin investment deal:- Hannah Mallen, Development Bank of Wales; Ben Miller, Darryl Morton, Ben Gretton,and Piers Oliphant.

A Newport tech start-up that has developed a case management system for use by child social care providers has been boosted with a six figures equity investment.

The pre-seed round for Lumin Solutions, which successfully spun out of the Alacrity Foundation entrepreneurship programme, was led by SFC Capital, the Development Bank of Wales and a syndicate of business angels.

The company is run by directors Piers Oliphant, 25, Ben Miller, 24, and Ben Gretton, 23. They teamed up at the Alacrity Foundation.

Lumin’s innovative software product is an outcome-focused recording and planning system for care providers, many of whom are still predominately paper-based. It offers a digital care assistant that improves user experience and outcomes, reduces costs and improves regulatory compliance with evidence tracking.

Key features include care plans, assessments and regular reporting. AI-powered analytics will enable users to analyse their data and records with speed and customisation, offering insights into their organisation and care practices to improve outcomes and prepare for inspections.

The funding from SFC, the development bank and the syndicate of business angels led by lead investor Darryl Morton will be used to scale-up product development, sales and marketing.

Director Mr Oliphant said: “The ��Ƶ’S Digital strategy is pushing care providers to adopt digital care recording systems and maintain appropriate records by 2025. With 60% of care providers still paper-based or partly digital, this is a rapidly growing market.

“Our technology will help provide local care providers with a data-driven and joined-up approach that has a clear audit trail. This will allow care providers more time to focus on providing quality care, therefore ultimately improving childcare.

“The Alacrity Programme has helped us to become investor ready so that we can secure the funding needed to scale our operation but what we are really excited about is being able to access the knowledge and experience of our investors, particularly Darryl who has founded, scaled and exited similar tech businesses.”

Lead investor Mr Morton of Summit Venture said: “The child social care market is under-served by quality care management software systems. In a short space of time, the team at Lumin have already developed a core system and have road-tested this with a number of industry partners, and now, with the financial backing from this investment round, are poised to develop the software further and help to raise standards within the sector. It is a really exciting opportunity to be involved with.”

Adam Beveridge of SFC Capital said: “One of the biggest challenges for any start-up is securing initial funding. It is credit to the team at Lumin and their commitment to developing innovative software that tackles real-life industry problems, that this pre-seed round has been so successful. We’re pleased to be adding them to our investment portfolio of over 400 start-ups and look forward to supporting them alongside the Development Bank and Darryl as our co-investors.”

Hannah Mallen, an investment executive with the Development Bank of Wales, said: “This is a dynamic and enthusiastic team that share a commitment to making a real difference. There is a clear market for Lumin’s people-focussed digital solution as child social care providers recognise how emerging technologies enable early intervention, risk assessment, and improved decision-making in child welfare. We’re delighted to be investing alongside SFC and using our Wales Angel Co-Investment Fund to add real fire power to the investment by Darryl and the syndicate of business angels.”

Flotek

Managed IT and communications provider, Flotek, have acquired the remaining shares in North Wales business Office Equipment Systems (OES) after an initial investment early last year.

The deal will also see OES managing director, Wayne Jones, joining Flotek as the group sales Director, and as a shareholder within the Group.

Jay Ball chief executive of Cardiff headquartered Flotek said: “We are delighted to have completed the transaction and to welcome Wayne to the team. I have always struggled to let go of Sales in all my companies and so this will be a new experience - however the investment in OES allowed me to get to know Wayne, coach him and develop him which led OES to grow recurring revenues by over 40% and drive customer service stats up in just over one year, and so I knew immediately he was the person to lead our strategy and allow me to focus on my role further.”

GS Verde Group advised Flotek on the deal.

TXO

Chepstow-based TXO , a global leader in sustainable technology lifecycle solutions, has expanded its presence in North America with the acquisition of AirWay Group.

AirWay Group providers network infrastructure products and services. The move significantly increases TXO’s scale in North America and enhances its customer value proposition in lifecycle management, network and engineering, staging, sourcing, logistics, and technology reuse.

Founded in 1992, AirWay supports more than 250 telecom and broadband customers in more than 70 countries. It works with all four major US national carriers - AT&T, Dish, T-Mobile, and Verizon.

Simon Wort, group chief executive of TXO, said: “AirWay’s addition marks a major step forward in our mission to become the global leader in sustainable technology solutions. Their scale, technical expertise and market credibility - especially in the US - strengthen our platform for future growth, strategic partnerships and mergers and acquisitions.

“Culturally, this is a strong alignment: we share a customer-first mindset, a commitment to sustainability, and a passion for delivering operational excellence. Together, we will accelerate our impact and continue building a truly global circular economy.”

Tom Eaton, chief executive of AirWay, said: “We’re proud to join the TXO Group at a time when the industry is seeking smarter, cost effective and more sustainable ways to manage network infrastructure. With TXO’s global scale, our team will have greater resources to grow, invest and innovate. We’ve always focused on performance, transparency and strong partnerships and together, we’ll bring those values to even more customers worldwide.”

As part of the transition, Mark Gergel, chairman of AirWay, will join the current TXO advisory board. He will work alongside current Advisory Board members Alan Ockenden and Karim Barkawi, Mr Eaton will take on the role of chief executive, TXO Americas, leading the group’s operations in the US and supporting continued expansion across the region. .

The TXO now includes over 450 specialists across five continents.