Welcome to the latest edition of the DIGIT Deal Roundup.

Scotland’s tech sector jumped right back to work in January, with a swath of new investment, funding, and acquisition news across the industry.

For a recap on those standout stories, here’s our round-up.

Funding and Investments

Kick ICT Receives £8.5M From BGF 

Kick ICT, a Bellshill-based independent IT managed service provider, received strategic support from growth capital investor BGF to the tune of £8.5 million in 2021. 

Now, BGF is announcing a “triumphant” exit from the Glasgow-based company as a result of strong performance since its initial investment. The successful exit yielded a 2x money multiple (MM) and a 38% internal rate of return (IRR) on the investment. 

BGF was first set up in 2011 and has since invested over £3.5 billion in over 500 companies. It positions itself as a minority, “non-controlling equity partner with a patient outlook on investments, based on shared long-term goals with the management teams it backs.”

Read more here.

Cumulus Oncology Lands £9M in Seed Funding 

Cumulus Oncology, a biotech creation studio and drug discovery accelerator specialising in oncology, has raised £9 million in seed financing led by existing investor Eos Advisory and with participation from the Scottish National Investment Bank. 

Cumulus’s business model involves the creation of spin-out companies. Its focus is on areas in biology with strong scientific validation, and the company is on the forefront of novel therapeutic options for cancer patients. 

Founded in 2017, the firm fast tracks treatments into clinical trials for cancer types that don’t respond well to existing procedures. 

“The business model enables only the strongest science to be translated from discovery into clinical trials,” said Clare Wareing, founder and CEO of Cumulus Oncology. 

Read the full story here. 

ScotlandIS Funds Maths Scholarship for Tech Talent Boost

In an effort to tackle the Scottish tech skills gap, ScotlandIS has announced a new partnership with tutoring organisation, Saturday School Ltd, to launch, The ScotlandIS Scholarship – a programme designed to empower young people to shape, change and drive Scotland’s digital economy.

The scholarship will support 12 ScotlandIS Scholars from Glasgow and The West in securing their National 5 Maths qualification. This support includes six weekly lessons in National 5 Maths at Saturday School in The Glasgow Academy, attendance at The National 5 Matsh Grade Booster Day to prepare for the final exam and unlimited online support from Saturday School’s fully qualified maths teachers.

Successful candidates will also get the opportunity to meet and learn from senior leaders in Scotland’s digital sector.

Read the full story here. 

Whiskey Discovery Platform Bevvy Secures £1.2M 

Bevvy, the whisky discovery app founded in 2021 and based in Scotland, has closed a $1.5 million (£1.2m~) seed funding round.

The new investment principally comes from Scottish angel investors, existing shareholders, and a Denver-based family office.

Laurie Black, co-founder and head of whisky, commented: “Having already established the leading position in the digital whisky space; this new capital allows us to cement our market share and grow our consumer audience into new territories. We’re hugely excited to be heading Stateside in 2024!”

Founded three years ago by whisky expert Black, medtech entrepreneur Lucas Heron, and mathematician Atanas Tonchev, Bevvy is a tech-led platform that operates via consumer-facing Android and Apple mobile phone applications.

Read the full story here. 

Trojan Energy Lands £26M Investment Boost 

Trojan Energy, an on-street electric vehicle (EV) charging specialist, has secured substantial investment to bolster its charging technology stations that sit flush to the pavement to create a “clutter free” streetscape. 

The investment round was led by the Scottish National Investment Bank with a £18m follow-on investment, as well as £8m from growth capital investor BGF. Existing investors include Scottish Enterprise, Equity Gap, Alba Equity, and Social Investment Scotland.

According to the company, the money will fuel the continued deployment of the chargers across the UK.

“This funding will allow Trojan Energy to continue its journey and deploy several thousand more charging points across the UK, serving tens of thousands of customers,” said Ian Mackenzie, CEO at Trojan Energy.

Read the full story here. 

Edinburgh’s Build a Rocket Boy Lands $110M 

Build A Rocket Boy, headquartered in Edinburgh, has successfully concluded a Series D fundraising round. The round was led by the private investment firm RedBird Capital Partners, with support from both existing and new investors, including Galaxy Interactive, NetEase Games, Endeavor, Alignment Growth, Woodline Partners LP, GTAM Partners, and others.

The funds, exceeding £86m, will fuel the launch of the company’s three major products: an immersive gaming and entertainment open-world platform EVERYWHERE, AAA game series MindsEye, and a suite of user-friendly UGC (User-Generated Content) design tools named ARCADIA.

“We are excited to partner with RedBird and our other investors to help us launch EVERYWHERE, MindsEye, and what we believe will be game-changing UGC design tools in ARCADIA. RedBird’s expertise in building successful entertainment and media platforms will be invaluable and makes them a perfect partner,” said Leslie Benzies, founder and chairman of Build A Rocket Boy. 

Read the full story here. 

Scots Biotech Organisation IBioIC Secures Long-term Funding

To help secure its position at the forefront of Scotland’s emerging bioeconomy, the Industrial Biotechnology Innovation Centre (IBioIC) has been awarded long-term investment from the Scottish Funding Council (SFC).

Announced by the First Minister today (17th January), the commitment—whose sum hasn’t been disclosed—will enable the innovation centre to continue the development of a greener economy and support Scotland’s transition to net zero.

Industrial biotechnology explores the creation of more sustainable materials, consumer goods, and pharmaceuticals by using bio-based alternatives to petrochemicals.

IBioIC delivers support for industrial research and development, early-stage entrepreneurship—including university spinouts and startups—and helps develop a skilled workforce for the green transition.

Read the full story here. 

Cleaner Energy, Robotics, and VR Research Awarded Scots Funding 

One Singaporean company and four businesses based in England will collaborate with Scottish universities on new projects following funding from the Inward Investment Catalyst Fund.

The Catalyst Fund was launched by the Scottish Government and Interface, the Edinburgh-headquartered organisation supporting innovation and knowledge exchange, to support businesses not yet located in Scotland to work with Scottish academic institutions.

From advancements in hydrogen energy technology to a remote robotic training system, the projects in this latest funding round help support a net-zero, health, and wellbeing economy.

Read the full story here. 

Snugg Secures UK Gov Funding for Green Home Hub 

Snugg, the home energy efficiency firm, has secured nearly £2 million in funding from the UK government to help develop their Green Home Hub.

The significant funding boost is part of the UK Government’s Department for Energy Security and Net Zero’s Green Home Finance Accelerator initiative, funded through the Net Zero Innovation Portfolio.

The Green Home Hub (GHH), in partnership with leading finance providers Perenna and Scroll Finance, follows the earlier success of a £170,000 government grant awarded to Snugg to develop a prototype of the hub during Phase 1 of the programme.

“Receiving the UK Government’s backing to build the Green Home Hub is a win for everyone,” Robin Peters, CEO at Snugg said.

Read the full story here. 

Scottish Innovation Centres to Be Given Up to £8 Million a Year

Annual funding of up to £8 million has been allocated to the Scottish Innovation Centres, delivered through the government’s Scottish Funding Council (SFC), it’s been announced.

The centres work with Scotland’s higher education institutions, such as colleges, universities, and research institutes, with the aim of spurring innovation in businesses, as well as the public and third sectors.

The Scottish Government said that the yearly funding “will support the Innovation Centres to strengthen relationships with colleges and universities” and “lead to greater impact for Scotland.”

The funding announcement was made by first minister Humza Yousaf at the opening of the National Retrofit Centre for Scotland at Built Environment Smarter Transformation (BE-ST) in Hamilton.

Read the full story here. 

Scot Agritech IGS Bags £22.5M Funding for Global Expansion

Intelligent Growth Solutions (IGS) has today announced that it has raised £22.5 million in a Series C fundraise to support significant global expansion as the business deploys its vertical farming technology to customers worldwide.

The investment comes after IGS announced at COP28 it would be joining Dubai-based partner ReFarm to build a ‘game-changing’ 900,000 square foot GigaFarm in the United Arab Emirates, capable of replacing 1% of food imports to the country.

The innovative waste-to-value farm will have the ability to recycle more than 50,000 tonnes of food waste and grow two billion plants each year.

Read the full story here. 

Scots Firm Flowcopter Secures £1M for Greener Industrial Drones

Flowcopter, a drone technology manufacturer, has received almost £1 million from Scottish Enterprise to support the development of a new hybrid, heavy-lift, unmanned aircraft that can rival—and operate on 30% less fuel than—helicopters.

The Scots firm designs and manufactures unmanned aerial vehicles (UAVs) and recently expanded into larger premises in Loanhead, Midlothian.

It’s set to use the £950,000 from Scottish Enterprise to develop an industrial heavy-lift drone capable of carrying up to 100kgs of goods to target industries including retail, renewables, agriculture, emergency rescue, and humanitarian aid.

Speaking on the new funding, Peter McCurry, the managing director of Flowcopter, said: “The ongoing support we’ve had from Scottish Enterprise is fantastic and will enable us to develop our drone products further and access markets such as the offshore wind supply chain.”

Read the full story here. 

UK Gov Awards £33M to Clean Maritime Tech Projects

The UK Government has provided £33 million in funding to over 30 projects to develop green technologies for the country’s ports and ships.

The funding pot has been awarded to 33 projects across all 12 UK regions to deliver demonstrations, factory trials, and feasibility studies.

The government said that the initiatives position the UK as a leader in emerging clean maritime tech, helping to boost high-skilled sustainable jobs and coastal economies.

Lesley Robinson, the CEO of British Marine, the membership company for the UK’s maritime industry, commented: “This significant funding is just one way in which the government can help accelerate our industry’s journey to net zero emissions and mark a new era in maritime history.”

Read the full story here. 

Scots Carcinotech Raises £4.2M for US Expansion 

Carcinotech has raised £4.2 million of funding as the company looks to build on its traction in the UK and Europe with US expansion planned later this year.

The company’s Carcino3D technology enables the manufacture of 3D printed micro-tumours using cells derived from patient biopsies and blood samples to precisely simulate the tumour microenvironment thereby accelerating ethical drug screening and the delivery of more effective cancer treatments to market.

Ishani Malhotra, CEO and founder of Carcinotech, said: “Our vision is to be at the forefront of cancer drug testing and provide personalised medicine testing to every individual suffering from cancer to improve their treatment and chance of survival.

Read the full story here. 

Acquisitions

Aspire Confirms Acquisition of Cloud Cover IT

Cybersecurity and modern workplace managed service providers, Aspire Technology Solutions, has announced the acquisition of Cloud Cover IT, a managed service provider based in Glasgow.

Aspire says that this is an ‘important strategic acquisition, aligning with its vision for expansion into new UK regions and expanding its portfolio of cutting-edge technology solutions.’

As part of this investment, Cloud Cover IT will become a part of the Aspire group and its software development and business applications division will be rebranded as “Flyte.” The company will be well-positioned to make ongoing investments and extending its business applications offerings to better serve its growing customer base.

Chris Fraser, Aspire CEO and founder said: “Our acquisition of Cloud Cover IT marks a new and exciting chapter for both companies. This move will strengthen our presence in Scotland, positioning us in a thriving market.

Read the full story here.  

Hewlett Packard Enterprise to Acquire Juniper for £11bn

Hewlett Packard Enterprise will acquire Juniper, its networking gear vendor, for around $14bn (£11bn), or $40 (£31) per share in an all-cash deal. 

Following the Wall Street Journal’s report that the companies were in “advanced talks,” HPE’s share price jumped 22%. Their purchase price of $40 therefore represents a 32% premium over Monday’s close before the Journal story was published. 

HPE expects to close the deal late this year or even early 2025, pending regulatory approval and approval of the transaction by Juniper shareholders. According to HPE, the acquisition will double its existing networking business after years of competition, as well as lead to $450 million (£353.5m) in annual cost savings within three years of the deal’s completion, HPE said.

Read the full story here. 

FNZ Acquires Luxembourg B2B Fund Platform ifsam 

FNZ, the global wealth management platform, has completed the acquisition of ifsam, International Fund Services & Asset Management S.A., a business-to-business (B2B) fund platform based in Luxembourg following regulatory approval.

The acquisition further strengthens FNZ’s global proposition for both asset managers and distributors, adding advanced product, research, data and service solutions to its existing end-to-end wealth management platform.

Luxembourg, the largest fund centre in Europe, will become FNZ’s centre of excellence for fund processing services in Europe.

Adrian Durham, FNZ Group CEO, said: “This is another significant investment for FNZ and further enhances our capabilities in the wealth management sector, as well as expanding our footprint in the continent’s biggest hub for funds.”

Read the full story here.