First exit for Wales Technology Seed Fund announced

Hudman, a technology company based in Cwmbran, has been acquired by software giant Advanced – making it the first exit for the Wales Technology Seed Fund.

The deal has seen equity investment company Finance Wales sell its share in the firm. Hudman provides cloud software for the manufacturing, engineering and construction industries.

Launched in 2014 by the Welsh Government and Finance Wales, the £7.5 million fund makes investments in early-stage science and technology companies ranging from £50,000 to £250,000.

Companies looking to apply for this fund must demonstrate that they have a technology-focused plan and be located in, or willing to relocate to, Wales. So far, it’s made 40 investments in 29 companies.

Philip Barnes, an investment executive, structured the deal on behalf of Finance Wales in August 2016. He said: “Hudman is the first exit for the Wales Technology Seed Fund, less than a year after our equity investment.

“They’re an extraordinary business which has captured the interest of one of the UK’s biggest software companies. As part of Advanced their product will be invested in further and realise its potential to reach  an even wider market than it currently does.

David James, managing director of Hudman, said: “This acquisition opens up an exciting new chapter for our software and is a result of the hard work by everyone at Hudman.

“Following investment rounds in 2015 and 2016, we have continued to invest heavily into the development of our ERP solution and we are extremely pleased that this has been recognised.

“Advanced bring a wealth of experience in the ERP sector and we passionately believe that the strength of our solution, and the value it offers to customers, will only increase as a result. The entire team will be joining Advanced and we look forward to being part of the next phase of their journey.”

David was put in touch with Advanced by Xenos, the Wales business angel network. It introduces Welsh small and medium-sized enterprises and early stage business ventures to suitable high net worth individuals.

Steve Holt, programme director at Xenos, said: “We’ve supported Hudman from its first days, introducing the company to its now Managing Director David James through our angel network.

“We’re delighted that this great business has been acquired and will continue to grow as part of Advanced. We wish David and the team the very best.”