The latest acquisition deals in Welsh business

Here we feature the latest equity and acquisition deals in Welsh business.

Caerphilly-based Drone Evolution has secured equity backing from the British Business Bank’s £135m Investment Fund Wales as it looks to accelerate growth.

The company, which was set up in 2018, has secured a £850,000 investment from the £50m equity element of the fund from the economic development bank of the UK Government, which is funded managed by Foresight.

The nine-strong team, co-founded by business partners Clayton Earney, Toby Townrow and John Young, pilot drones and provide UK-wide consultancy services. Some of its key clients include multi national property management company CBRE facilities management venture Mitie, Caerphilly Borough Council, as well as delivering in-depth land surveys for EDF Energy’s windfarm projects.

Drones, or unmanned aerial vehicles (UAVs) are used to supply aid and food, water and medicine to areas Following the aftermath of Storm Dennis, Drone Evolution, was able to inspect infrastructure damage, problem areas and terrain conditions, to assist in the clean-up operation and to provide mapping and data collection.

Mr Townrow, business development director at Drone Evolution, said:“Much of our work is inspection and detection, as well as remedial work. We offer early analysis to prevent potential damage. Our drones are used to complete building, telecoms and typography land surveys, thermography and traffic monitoring. We have worked extensively on coal tip mapping and monitoring year on year for any shift or danger.

“We continue to work closely with local authorities to help reduce overhead costs. Our drones identify blocked drains or missing tiles on schools, to prevent leaks and damage.”

On its latest investment he added:“It was clear from our very first conversations with Foresight that we were compatible for Investment Fund for Wales support in unlocking the business’ true potential.”

Drone Evolution has patented a tethered quadcopter design drone, which can fly for extended periods. As they are powered by a cable, these drones benefit security operations in a temporary space including sports events or music concerts.

Mark Sterritt, director, nations and regions Investment Funds at the British Business Bank, said: “The Investment Fund for Wales was established to provide the financial backing that innovative and ambitious companies like Drone Evolution so often need and we are particularly pleased to support their expansion plans as they continue to scale.

“The Drone Evolution team is highly experienced, driven and passionate about this specialist, emerging sector, and they have already developed an impressive roster of clients. I’m looking forward to hearing more about what they do next following this significant investment.”

Ruby Godrich, investment manager in the private equity team at Foresight, said:“Drone Evolution is an ambitious, growing business with a passionate management team. Over the last few years, the team has grown a successful drone services division whilst also developing a range of products.

"! Foresight’s investment via the Investment Fund for Wales will help the company to further scale and in turn have a positive impact on the local economy through the creation of skilled jobs. We are delighted to be supporting Drone Evolution and look forward to partnering with the team on their exciting growth journey.”

The Development Bank of Wales is a minority equity holder in the business.

Llusern Scientific

University spinout firm Llusern Scientific, which has developed a rapid diagnostic test for urinary tract infections (UTIs), has been boosted with a six-figure equity round investment.

The Cardiff-based company - which spun out of the University of South Wales - has been backed by the Development Bank of Wales in its latest fundraise aimed at accelerating its commercialisation.

Since the start of the year the development bank has invested in six spinout firms with a combined value of £1.7m. The others include Swansea-based Corryn Biotechnologies and Grove Nanomaterials along with Awen Oncology, a spin-out of Bangor University and Cardiff University. Cardiff Metropolitan University spinout Kaydiar and Cardiff University spinout Optimise.ai

Llusern Scientific was established by microbiologist Dr Emma Hayhurst and molecular geneticist Dr Jeroen Nieuwland after they were awarded a discovery award from the Longitude Prize and UK innovation agency NESTA to develop an affordable diagnostic tool to combat antibiotic resistance.

They were later joined by biomedical engineer Professor Ali Roula and diagnostic professional Martyn Lewis to develop Lodestar DX, a molecular diagnostic test system for both humans and animals that is non-invasive and capable of providing highly accurate results in 35 minutes.

Chief executive of Llusern Scientific, Dr Hayhurst said: “UTI prevalence is rising with an ageing population and the increase in antibiotic resistant infections. The gold standard for UTI diagnosis is microbiological urine culture and, in the UK, millions of urine tests are processed and cultured each year. However, a major drawback of urine culture systems is the time lag of approximately two days between specimen collection and pathogen identification. Fast and accurate diagnosis, leading to a rational treatment, is essential to achieve a timely and effective therapy.

“Our rapid and easy-to-use UTI test-kits are fully developed and commercially available in the UK, with a real-world evaluation underway within the primary care sector. Th