Direct Investments

£1m investment in Bluetooth and Wi-Fi component designer and manufacturer LM Technologies

Mercia Technologies PLC (AIM: MERC, “Mercia” or the “Group”), a Midlands-based investment business building, funding and commercialising technology businesses across the UK, has committed to invest £1 million in LM Technologies Limited (“LM Technologies”), a leading designer and manufacturer of wireless cable replacement components.

This additional capital follows a long-standing investment by the Group’s third party funds managed by its wholly owned subsidiary, Mercia Fund Management (“MFM”). Following this investment, Mercia will have a 41% direct holding in LM Technologies, 65% when its stake via its third party funds is included.

LM Technologies has been designing, developing and manufacturing Bluetooth and Wi-Fi adaptors and modules for over 10 years. The company adds Bluetooth and wireless components to a wide range of electronic devices, including cash registers, electricity meters and receipt printers and promotes its products through a global network of distributors, resellers and systems integrators.

Sales have shown 30% year on year growth over the past three years, with more than three million products built and shipped since 2011.

Mark Payton, Chief Executive Officer of Mercia Technologies PLC, said:

“LM Technologies operates in the high growth area of connectivity and the Internet of Things and therefore fits well into our portfolio.

“LM Technologies has a track record of strong growth and an enviable blue chip customer base to include the likes of Casio, Toshiba, Panasonic, Honeywell, Epson, Bosch and PayPal. Market facing, it has invested in developing a strong suite of new products now reflected it its strong revenue growth.

“Coming through our third party funds, this ’emerging star’ proves out our model of patiently nurturing our early stage investments and then scaling successful portfolio companies with our direct investment capital. We are delighted to continue working with LM Technologies’ dynamic and innovative team as they take the business into the next growth phase.”

Michael Sims, Managing Director of LM Technologies Limited, said:

“Mercia’s investment and expertise will be invaluable as we exploit the numerous opportunities within the rapidly expanding Internet of Things market.

“With our global network of distributors, we anticipate that we will outperform our past growth track record.”

About LM Technologies Limited

LM Technologies is a key enabler of both the Internet of Things (IoT) and cable-free integrator that designs, develops and manufactures innovative wireless products using world-leading technologies and standards, including Bluetooth®, WiFi™, Sigfox®, Thread® and Zigbee®.

We incorporate these technologies within our Wireless Modules and Adapters, designing our own hardware, firmware and software applications, delivering solutions for industry.

We offer solutions for global market leaders in Point of Sale, Automotive and Engineering, Banking, Computing, Vending, Healthcare, Consumer Lifestyle, Home Automation, Location, Lighting and more.

LM Technologies has offices in London, China and Hong Kong and are proud members of the Bluetooth SIG.