DIGIT Deal Roundup – July 2018
Welcome to the July edition of the DIGIT Deal Roundup. This month we cover the funding, acquisitions and new deals for companies including: Whitespace, Farrpoint, CareSourcer and Craneware.
Edinburgh based software specialist Craneware has announced that it has signed a contract with a large hospital network in the eastern US, which will see the firm’s technology rolled out to 12 facilities under the new agreement as of October.
The Scottish firm has said that the contract is expected to deliver more than £4.5 million of revenue over its initial five-year term. This new deal serves to highlight the company’s strong underlying new sales growth.
IT, telecoms and infrastructure consultancy FarrPoint has successfully supported West Sussex County Council (WSCC) in securing £4.66m of funding from the Local Full Fibre Networks (LFFN) Challenge Fund, under Wave 1, and in procuring services to upgrade and future-proof the connectivity to Districts, Boroughs and County sites across the council area.
The fund, a government led initiative from the Department for Digital, Culture Media and Sport, finances projects aiming to extend the availability of full fibre infrastructure throughout the country. The new funding will be used by WSCC to secure an upgrade of their own connectivity, as well as that of other public sector partner organisations, by sourcing dark fibre connectivity for the long term, with a view to migrating their connectivity services over these circuits.
Speaking about the project, FarrPoint co-founder, Dr Andrew Muir, said: “This project has been a great success for FarrPoint and adds to our portfolio of public sector work. The final agreement represents a great connectivity solution for West Sussex County Council who will benefit in both the short and long term with reduced costs, increased capability and efficiency across their networks. It will also support collaboration and efficiencies between public-sector agencies and can provide a platform on which to accelerate the health and social care integration.
“Throughout the project we applied our prior knowledge on what is required for a successful LFFN bid and procurement process. With the third wave of LFFN funding approaching, we are confident our expertise and experience can benefit other local authorities looking to improve their fibre capabilities and be well equipped for the digital challenges of the future.”
Glasgow based brand agency MadeBrave has aquired Edinburgh content production agency Campfire to create a new holding company, BornOriginal Group. Both companies will continue to operate independently. With existing offices at its Glasgow HQ and recently-opened London office, the deal will also give the group a footprint in Scotland’s capital.
Dobbie said of the deal: “MadeBrave and Campfire have got together on many occasions to produce industry-leading work. It’s the perfect time to join forces as video consumption increases exponentially and content marketing is constantly evolving in response to consumer trends and advancing technologies.
“The overall vision for the group is to enable clients to have access to specialist niche services from both Campfire and MadeBrave but also gain from the strength and power of the group.”
Phillips commented: “It’s an exciting new chapter for Campfire. Andrew and I have been friends for many years and we both strongly believe in the power of creative collaboration.
“Our companies share closely aligned values and culture and the strength we now have within the group’s complimentary service offerings will allow us to grow with some exciting opportunities and more international work on the horizon.”
Brand giant Dentsu Aegis Network has acquired Edinburgh-based digital creative agency, Whitespace. As a result of the acquisition, Whitespace’s 65-strong team will be amalgamated into Dentsu Aegis network’s northern operations. Joint Managing Partners, Iain Valentine and Phillip Lockwood-Holmes, will continue to lead the business, with the current management team.
Lockwood-Holmes said: “Over the last 21 years, Whitespace, at every stage and size, has always looked to create the best work. I’m incredibly excited about joining Dentsu Aegis Network, the potential for our team and our clients is fantastic.
“By combining our creative and technical talent with data-driven customer insight, advanced media planning and performance marketing techniques we’re going to create even more stand out work for our clients.”
Rachel McDonald, Managing Director, Dentsu Aegis Network North added: “Scotland remains strategically important for us and this substantial investment in the market will enable us to offer our clients unrivalled capability through an Edinburgh team of 135 people”.
Care comparison and matching website, Care Sourcer, has secured £8.5m investment from Legal & General Retirement Retail and ADV. The Edinburgh based start-up has announced that it will use this fresh round of funding to expand its team at its Edinburgh headquarters from 20 employees to 100 by the end of 2020. The company also announced that it has appointed former Skyscanner COO Mark Logan to its board as a non-executive director and advisor.
Logan said of the investment: “Care Sourcer is one of the UK’s most exciting start-ups; it has the potential to make a hugely positive impact both on people’s lives and on the entire social care system. This investment enables Care Sourcer to expand its service rapidly, and I’m very excited at the prospect of helping the team to successfully scale the business.”
Paul Lewis, Managing Director at Scottish Enterprise, which has supported the firm since its inception said: “Securing this level of new investment is a tremendous achievement by Care Sourcer. Working with high growth start-up companies like this to realise their potential is at the heart of what we do, in order to help grow our economy and build a stronger and more equal society for Scotland. We look forward to continuing to work alongside the Care Sourcer team to support and implement their ambitious growth plans.”
Former FanDuel bosses and co-founders, Nigel Eccles and Rob Jones , have successfully closed a $4m round of fundraising for their latest eSports venture, Flick. The new business was launched at the beginning of 2018 shortly after the duo’s departure from FanDuel. It is expected the new firm will bring its first product to market in the coming weeks.
The company will be headquartered in the US, where Eccles is now based and has been incorporated in Delaware, considered to be one of the most business-friendly states in the US. This latest venture has received financial backing exclusively from US institutional investors. However, Eccles has stated that he wanted to build the firm’s team in Scotland due to the country’s large pool of exceptional software engineers and deep talent in games development. Jones has spent the past seven months creating the engineering team in Scotland that is currently working on the company’s product.
Scottish medtech company Snap40 has raised $8m in a new seed fund round led by ADV, with participation from MMC Ventures. This new funding takes the firm’s total investment to-date to $10m. The company plans to use the new funding to expand its headcount by the end of 2018.
The investment will accelerate the firm’s expansion into the US, where it has clinical trials and pilots with leading hospitals and institutions looking to identify acutely and chronically deteriorating patients earlier, in order to reduce risk and cost while improving patient health.
The company is headquartered in Edinburgh and already has an office in New York.