The Development Bank of Wales has successfully exited Vortex IoT Limited just three years after providing initial pre-seed capital funding to the technology start-up that now employs 35.
The Neath-based supplier of environmental sensors, networks and data solutions has been acquired by Marston Holdings, the UK’s leading provider of integrated, technology-enabled transport solutions. Figures have not been disclosed.
Marston supports government, utilities and private sector clients through the delivery of market leading integrated technology-enabled solutions from design through to implementation, management and recovery. Marston’s clients include local authorities seeking to build environmental schemes that reduce congestion and pollution. With the acquisition of Vortex, Marston will strengthen its offering by delivering complementary air quality solutions that maximise awareness, identify pollution hotspots and improve public health.
Headquartered in Neath, Vortex IoT was founded by CEO Adrian Sutton and CTO Behzad Heravi. It is made up of a highly-skilled team of 35 that includes engineers with expertise in emerging technologies, Artificial Intelligence (AI), 5G, LiDAR laser technology and machine learning.
As equity funders, the Development Bank of Wales invested £250,000 pre-Seed capital followed by a further £250,000 from the Wales Business Fund alongside London-based Start-up Funding Club (SFC Capital). Having enabled Vortex to scale-up in just three years, the Development Bank has now exited.
Adrian Sutton, CEO of Vortex IoT, commented: “Joining Marston Holdings accelerates Vortex IoT’s ability to deliver social value and environmental change for clients, and we’re delighted to collectively build on the existing relationships we have established as trusted partners to our clients in bringing cutting edge smart city and environmental monitoring solutions to market.
“The equity funding and support from the Development Bank made a difference to our business, enabling us to be at the forefront of the fight against climate change with the development of solutions that help reduce carbon emissions. It’s also what has given us the platform to build a business that is attractive to bigger players like Marston meaning that we can continue to grow with the benefit of the Welsh ecosystem all around us.”
Alexander Leigh, Senior Investment Executive with the Development Bank of Wales said: “As early investors in Vortex with pre-seed capital and follow-on funding, we are delighted to have supported the growth of this exciting business over the last three years.
“It’s hugely rewarding to exit a start-up after such a short period of time, particularly having seen the team benefit from the support available here in Wales. They could have set-up anywhere in the world but chose Wales because of our can-do attitude, the help available for entrepreneurs in the tech sector and the lower cost base.
“Marston’s acquisition of Vortex now further accelerates the opportunity for the team to deliver their innovative air quality solutions that are very much needed for a zero-carbon economy whilst also continuing to invest in highly skilled jobs from their base in Neath. It’s a brilliant success story that we are really proud to have played a part in.
The acquisition of Vortex follows the 2019 acquisitions of Videalert, a supplier of intelligent traffic management solutions; ParkTrade, a Swedish-based European tolling payments and collections business; and LogicValley, an Indian-based AI focused developer. Vortex’s products further bolster Marston’s transportation technology division, ensuring Marston is best placed to meet the evolving needs of its client base.
Mark Hoskin, Chief Commercial Officer at Marston Holdings added: “We have a long track record of successfully working in partnership with the public sector, and this acquisition reflects client feedback seeking innovative, technology-enabled solutions. COP26 demonstrated public support for driving the transition to a zero-carbon economy, and we’re pleased to further enhance our ability to support our clients and their residents through cleaner, healthier and more people-friendly communities.”