A key investment by business angels from the region to Cramlington-based MSI Holdings Limited has been successfully completed.

The investment will help to rapidly grow the group and drive forward the design and production of electric vehicles in the north east, seen by many as being the car industry of the future. 

MSI owns AVID Vehicles Limited of Cramlington which is a leader in the design of electric vehicle powertrain systems. The investment will help AVID to build on its unique technology and expertise in pioneering electric vehicle design. AVID has recently won several large contracts to supply its technology and develop electric vehicles for leading vehicle manufacturers and is widely recognised as one of the leaders in its field.

As part of the investment MSI Holdings also acquired the ComeSys Europe business, which is a key supplier to AVID. ComeSys Europe is a leading manufacturer of control systems and electronics for low emission vehicles. By bringing together the two businesses into a group MSI can now take advantage of their synergies and combined expertise.

MSI intends to grow each company independently, making ComeSys into a leading manufacturer of key hi-tech electronic components for the growing low carbon and low emission vehicle sector. AVID will continue to extend its world leading capability in the design and manufacture of complete electric vehicles and powertrain systems.

Ryan Maughan, founder and director of MSI Holdings said; "This investment will allow us to take the business forward through some very exciting times. There are clear synergies between AVID and ComeSys which we plan to make the most of. We are witniessing very rapid growth at AVID and we see huge potential in the ComeSys business. The MSI group of companies is now helping to mark out the North of England as a global hub of low carbon vehicle innovation and activity."

Tait Walker chartered accountants and leading law firm Watson Burton LLP advised MSI Holdings on the investment from north east automotive and engineering business angels Chris Thompson, chief executive of Express Group, Chris Baylis, former head of engineering at Nissan Europe and Dr Howard Forrest, former managing director with the Cookson Group.

Duncan Reid, corporate finance partner and head of private equity at Watson Burton said: "This is an important deal which helps to propel the region to the forefront in the UK for electric car design and production.

"Our role as legal advisers helped to structure the transaction and negotiate the complex documentation around the investment. Its successful completion is a great way to begin a new decade."

Watson Burton's senior level team also included corporate finance and banking partner Mark Lazenby, employment partner David Jenkins and corporate finance solicitor, Paul Wigham. Tait Walker's team included corporate finance partner Steve Plaskitt and corporate finance executive Lucy Gray.

Steve Plaskitt, corporate finance partner at Tait Walker said: "I am very pleased for the management of MSI to have found such excellent business angel investors who will bring so much valuable expertise and experience to them."

The MSI investment strengthens the energetic efforts of One North East to launch the region as a global centre for electric cars.