Muckle LLP help Avid Technology Group secure multi-million pound investment
We are pleased to announce we have advised North East electrical vehicle components manufacturer AVID Technology Group on a £3.4m investment to support its growth and development.
The funding injection will enable AVID to increase its engineering and manufacturing capability and capacity at its base in Cramlington, Northumberland, to meet the needs of customers.
Huge boost for the region
AVID is recognised as a leader in the design and manufacture of electrified vehicle powertrain systems. Its innovative technology is used by many leading vehicle manufacturers to improve the efficiency of their diesel engine products and enable their high performance electric, hybrid and fuel cell vehicle powertrains.
Our Corporate team partner Philip Clare led the deal with support from partner Mike Spetch and associate solicitor Adam Rayner.
Philip said: “AVID is an innovative and dynamic business with great growth potential. We are delighted to have worked with the team on this multimillion pound investment which is a huge boost for both the business and the region as a whole.
“It was a complex deal which involved a number of investors and advisors but by adopting a joined up and efficient approach we successfully delivered for our client. We’re very much looking forward to seeing AVID grow and reach its full potential thanks to this significant investment.”
NVM Private Equity (NVM) invested £2 million as part of the £3.4 million funding round. Also participating are existing investors North East Technology Fund (“NETF”), managed by IP Group plc, and new investors Downing LLP. Andy Hales, previously a corporate finance partner in KPMG’s diversified industrials team, has invested in AVID and will join the board as Chairman.
Innovative vehicle solutions
The AVID investment comes at a time when climate change and air pollution are major concerns. The exhaust emissions and fuel consumption of Heavy Duty Vehicles such as buses and trucks are a major contributor to these issues. AVID is playing an important role in tackling these major challenges, with AVID technology used in applications ranging from buses and off-highway machinery to hybrid and electric supercars. AVID is at the forefront of technical developments in the transition of vehicle powertrain to clean and efficient hybrid and electric technologies. The company has become the go-to development partner for global vehicle manufacturers because of its innovative fully integrated solutions
AVID was founded by award-winning entrepreneur Ryan Maughan and along with his ambitious management team has led its growth and development. Avid has design and engineering capabilities that help its customers meet the need for innovation, particularly in relation to electrification of engine components, and can now provide a full service from concept, design and testing, through to manufacturing and full integration into the vehicle.
Supporting UK growth
Mauro Biagioni, who led the deal with support from Charles Winward of NVM Private Equity, said: “AVID has a strong platform for growth. We have been impressed by the customer feedback and believe we have identified a business with an excellent leadership team. This investment demonstrates NVM’s commitment to supporting the growth of ambitious UK based companies, using our VCT funding and strategic expertise to create scale and sustainable value.”
Kostas Manolis, Partner at Downing LLP, said: “We are delighted to be able to support the growth of AVID Technology Group at a very exciting time for the business. We also recognise the benefits of investing alongside NVM and IP Group, two well-respected and dynamic investment houses, and we look forward to working with such a great team.”
Andy Hales, AVID Chairman, said: “I am pleased to be joining AVID. I’ve worked across the global engineering sector, and see significant opportunity for UK specialist engineering companies, especially those with AVID’s strong reputation for innovation, quality and delivery.”
Ryan Maughan, Managing Director of AVID, said: “This investment builds on the success of our fantastic team with our customer base of blue chip vehicle manufacturers and operators across the world. It will allow AVID to develop its engineering and manufacturing capabilities, to continue our mission of improving the efficiency and environmental impact of the most polluting vehicles. I am very grateful for the continued support of IP Group's NETF and the new investments from NVM and Downing who have recognised the capability of the AVID business. I am looking forward to working with the team to continue to deliver the vision for the business.”