Firms featured include Kubos Semiconductors, AerFin, Taylor Facilities Management and RGM Vehicle Body Repairs
Kubos Semiconductors has secured more than £1.5m in investment to accelerate the development of its novel compound semiconductor material technology.
The funding includes a Growth Catalyst project grant from Innovate UK, part of UK Research and Innovation, alongside matched investor funding from the Development Bank of Wales, the Low Carbon Innovation Fund 3 (LCIF3, a co-investment fund operated by the University of East Anglia,) and S4C Digital Media Limited.
The fundraise also includes follow-on investment from Kubos’ existing shareholders and brings the company’s total funding to around £6m.
Kubos is developing a patented compound semiconductor material aimed at enabling next-generation microscopic light-emitting diodes, known as microLEDs. The technology has potential applications in high-speed optical communications, AI and datacentre infrastructure, next-generation displays, augmented and virtual reality, and high-efficiency lighting.
Based at Cardiff University Kubos is part of the growing South Wales compound semiconductor cluster. The latest funding will help the company demonstrate improved production efficiency at scale, giving it a stronger pathway towards commercialisation and IP licensing within the microLED market.
The investment follows the Development Bank’s first backing for Kubos in 2024, when a £500,000 equity investment helped the company establish its Welsh base and strengthen its links with the region’s compound semiconductor expertise. That earlier round supported Kubos’ plans to bring its material technology to South Wales and recruit for specialist roles including testing engineering, device management and development.
This follow-on investment from the development bank has helped unlock further capital for the business, including the Innovate UK grant, and supports Kubos as it works towards its next technical and commercial milestones.
The support of LCIF3 also gives confidence that Kubos is making progress towards meeting its objectives in a key growth sector for South Wales.
Dr Susan Gormley, chief executive of Kubos, said:“We are deeply grateful to UKRI and our existing shareholders for this investment, which will accelerate the development of high-speed microLEDs for optical interconnects. The project perfectly complements Kubos’ ongoing development of a platform-material solution for high-efficiency microLEDs emitting across the visible wavelength spectrum.
“This is an exciting opportunity to strengthen Kubos’ pathway to commercialisation through the delivery of transformational technology for AI and datacentre infrastructure, next-generation displays and high-efficiency lighting.”
Gareth Mayhead, investment executive at the Development Bank of Wales, said:“Kubos is exactly the kind of Welsh tech venture that demonstrates the strength and potential of South Wales’ compound semiconductor sector. Since our first investment, the team has made encouraging progress in developing technology that could improve the efficiency and scalability of microLED production for global markets.
“Our follow-on funding is a relatively small investment, but it plays an important role in unlocking further capital, including Innovate UK grant support, and gives Kubos the runway it needs to continue proving its technology at scale. The continued support of LCIF3 also reflects confidence in the company’s progress and the opportunity for Wales to build on its growing reputation in this key growth sector.”
Taylor Facilities Management
Llanelli-based Taylor Facilities Management has been acquired in a management buyout backed with a £2.8m investment from the Development Bank of Wales that will also support its next growth phase .
The MBO has been led by long-term managers Trystan Lloyd, Pete Walsh, Jack Payne and Taylor Davies, along with Chris Thomas of SME Finance Partners. It has provides a partial equity exit for owners Pete and Leah Taylor.
Founded in 2013, Taylor Facilities Management has grown into a national facilities management company operating across the UK and Ireland. The business employs 70 people, and delivers a broad range of services and works with major commercial clients, alongside housing associations and local authorities.
The MBO strengthens the company’s leadership structure by introducing equity participation for key members of the management team. The new owners are central to delivering recently-secured contracts, and will play a leading role in driving further growth across the business.
Pete and Leah Taylor will retain a significant role within the business, continuing to lead operations and mentor the management team as it evolves under the new ownership structure. The transaction has been supported by SME Finance Partners, along with Barford Owen Davies and Blake Morgan.
Mr Taylor said: “We’ve built the business over the last decade and are incredibly proud of how far we’ve come. This investment allows us to recognise the contribution of the team that has helped drive that growth while putting the right structure in place for the future.
“The MBO gives our senior team a real stake in the business as we continue to expand and deliver new contracts across the UK and Ireland, while providing scope for an ambitious growth plan which will allow us to move into new sectors and create more jobs
Mr Lloyd, a member of the incoming ownership team and commercial director at Taylor Facilities Management, said: “As a group, we have been part of the business for a number of years. The family culture at the business means we’ve always felt comfortable in treating it as our own.
“This MBO has empowered us to move into management, allowing for continuity and ensuring our roles remain clear as we transition.
“Taking on ownership also gives us a start-up mentality – we see it as a new chapter with a strong foundation. It allows us to keep developing relationships and driving growth, without losing sight of where we’ve come from.”
Sam Macalister Smith, senior portfolio executive, and Mark Sommers, portfolio executive at the Development Bank of Wales, said: “Taylor Facilities Management is a strong example of a Welsh-founded business scaling successfully into a national operation.
This investment supports a well-planned management buyout that both rewards the founders and empowers the next generation of leadership, while keeping the business rooted in Wales and employing people locally
The business has secured high-profile contracts and demonstrated consistent growth, and we look forward to supporting the management team as they build on this momentum and continue to expand their footprint.”
RGM Vehicle Body Repairs
Family-owned accident repair specialist RGM Vehicle Body Repairs is under new ownership.
The business, which has been serving motorists across South Wales for more than 50 years, has been acquired by leading vehicle accident repair ventures the Vella Group, in a deal that gives it a presence in Wales for the first time.
The Vella Group were advised on the deal by the Cardiff office of FRP Corporate Finance. The value of the acquisition has not been disclosed. Vella’s acquisition has been backed by private equity firms Ama Capital and Keyhaven.
RGM Vehicle Body Repairs, which has repair workshops in Swansea and Haverfordwest, was originally founded by Robert Morgan and is now led by Paul Morgan.
As part of the transaction, Paul will remain with the business on a consultancy basis to help ensure a smooth transition for its 40 colleagues, its customers and partners.
FRP Corporate Finance, led by partner Thomas Edwards and manager Alexander Griffiths, advised on offer structure, project managed due diligence workstreams and led negotiations on equity price adjustments. This marks the fifth deal on which FRP Corporate Finance has advised the Vella Group.
Marc Holding, chief executive officer at The Vella Group, said: “We’re delighted to welcome Paul and everyone at RGM to the Vella Group. They’ve built a fantastic reputation over many years through hard work, integrity and consistently delivering for their customers. Businesses like RGM don’t earn that reputation overnight, and we’re committed to preserving everything that has made the business so successful while supporting its next chapter.”
Paul Morgan, director at RGM Vehicle Body Repairs said: “After 53 years in operation, finding the right home for the business was one of the most important decisions we’ve had to make.
” We wanted to work with a business that would value what we’ve built, look after our team and continue delivering the high standards our customers expect. From the outset, it was clear that the Vella Group shared those values, and I’m looking forward to supporting the business through the transition and seeing it go from strength to strength.”
Mr Griffiths, manager at FRP Corporate Finance said: “It has been a privilege to support the Vella Group as it has continued to grow and strengthen its position as one of the UK’s leading accident repair groups. This acquisition further demonstrates Vella’s commitment to strategic growth, expanding its geographic footprint and reinforcing its strong position in the market.
“RGM has become a well-established specialist provider over five decades, focusing on quality workmanship, investing in its people and always putting customers first. Those values closely align with the Vella Group’s own approach to building a sustainable, values-led business.”
Other advisers on the deal included, Broadfield (legal), and Crowe (due diligence).
AerFin
Welsh headquartered aviation maintenance, repair and overhaul company, AerFin, is being acquired by a Japanese venture in a deal worth hundreds of millions of pounds.
Newport headquartered AerFin, a leading aftermarket specialist that buys, sells, leases and repairs aircraft, engines and parts, is being acquired by Japanese firm Orix Aviation. Subject to regulatory approval the deal is expected to be finalised towards the end of the year.
The deal comes after AerFin, which also has operations in Miami, Singapore and Dublin, posted strong financials in 2025 with revenues climbing 25% to around £276m and Ebitda up 33% to more than £52m. The value of the deal has not been disclosed, but with debt, is understood to be around £475m.
Last year Aerfin completed a relocation from Bedwas to a new larger HQ and maintenance facilities at Indurent Park in Newport.
The deal provides an exit for AerFin’s private equity backers and majority owner CataCap. Of AerFin’s global workforce of more than 230 around half are based in Newport.
Established in 1991, Orix Aviation owns and manages aircraft and provides comprehensive asset management services to Japanese and international investors and funds through its full-service operating lease platform.
Chief executive of AerFin Simon Goodson said; “I am delighted that AerFin is joining the Orix Group, a business that shares our values and belief in trusted partnerships, flexible solutions and finding the way ahead for our customers.
“I would like to take this opportunity to thank our founder Bob James (who set up the business in 2010 originally in Cardiff) for his vision and tenacity, our departing majority shareholders CataCap for their outstanding custodianship and guidance, and of course our customers, employees and partners who have made our business what it is today.
“Wales has played a defining role in AerFin’s growth story. From our beginnings in Cardiff, through our time headquartered in Caerphilly, to our Newport headquarters today, we have built a global aviation business with Welsh talent, ambition and values at its core.
“This agreement is a major milestone for AerFin, but it is also a reflection of the expertise, commitment and commercial strength we have developed here in Wales. As part of Orix Aviation, we will have the backing to keep growing internationally while remaining proud of where our journey began.”
Crestline Cyber Security
An expanding IT and telecoms provider to businesses and organisations in the UK has made a further strategic acquisition in South Wales.
ITCS (UK) has acquired Bridgend-based Crestline Cyber Security, which provides digital asset protection, security resources and consulting, for an undisclosed figure.
It is the eighth acquisition by ITCS since being founded by Brian Stokes, managing sirector, nearly 22 years ago.
With the Crestline transaction, ITCS, headquartered in Bridgend, now employs a total of 65 plus staff with a turnover of £8m-plus.
ITCS’ operational footprint extends through South Wales and the Midlands to a data centre in London’s Docklands.
Mr Stoke said: “The acquisition further strengthens ITCS’s already extensive cybersecurity capabilities, bringing together two highly experienced teams with a shared commitment to protecting organisations from an increasingly sophisticated cyber threat landscape.
“By welcoming Crestline Cyber Security into the ITCS family, customers will benefit from an even broader portfolio of specialist cybersecurity services, fractional SCO, expert consultancy, strategic guidance and advanced protection incident response capabilities.
“The combined expertise will enable ITCS to deliver even greater value, helping businesses of all sizes strengthen their cyber resilience, safeguard critical digital assets and confidently navigate evolving security challenges.
“This strategic acquisition reinforces ITCS’s long-term commitment to investing in industry leading talent, innovative technologies and comprehensive security solutions that empower organisations to operate securely and with confidence. The acquisition represents another exciting chapter in the ITCS growth story, further cementing our position as a trusted technology partner and a leading provider of cyber security solutions across the UK.”
Crestline is ITCS’ eighth acquisition and follows the recent acquisitions of Midas Solutions in Bridgend and Poundbury Systems in Poundbury.













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