Fusion grabs Magnomatics

Fusion IP, a commercialisation subsidiary of the IP Group, has raised its shareholding in Sheffield’s green tech spin-out Magnomatics to 39%.

Fusion, which already held a 31% stake and acts as Sheffield’s tech transfer unit, raised its share after acquiring additional shares for £385k ($596k). The firm previously invested £366k in the firm during a $4m venture round along with parent company the IP Group (£1.06m) and investment firm Yorkshire Finance (£1.06m).

Sheffield-based Magnomatics was also awarded £1m from the Regional Growth Fund last week in the form of grant. Along with the investment, the company hoped to create at least 41 new jobs by 2015.

David Baynes, chief executive of Fusion IP, 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.”