BGF has invested £8.76m, with the remainder of the funds provided by existing backers, including Canadian specialist energy investor Kern Energy Partners, and NES, a Danish venture capital firm.
The subsea market is one of the fastest growing areas of the oil and gas industry. Pipelines are estimated to account for more than half of the $139bn projected spend on subsea hardware over the next five years.
Magma will use the new investment to install a new, high-tech manufacturing facility on a brownfield site in Southampton. The company currently employs 90 people, and the new plant should create an additional 100 jobs.
The company was founded in 2009 by CEO Martin Jones, CTO Damon Roberts and CFO Mike Boyd, who previously developed Insensys, a fibre optic sensing business backed by 3i and later sold to Schlumberger and Moog in 2007 and 2009 respectively.
The deal was jointly led by BGF’s Scottish and South West regional teams. This is the fifth manufacturing led business and the second oil and gas services provider that BGF backed in 2012. Recent manufacturing-led investments include £7.8m in STATS, an Aberdeen based oilfield service sector business; £3.85m in M Squared Lasers, a Glasgow based technology business; £3m in Cennox an ATM parts and refurbishment company and £4.8m in Wow! Stuff, a leading UK toy development company.
Mike Sibson, BGF’s investment director who joins the board of Magma Global, said, “Magma is a great fit for BGF. We are backing an experienced and ambitious team to build manufacturing capacity in a high technology business which will export to the international oil and gas market.”
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