Investment Infusion from Saudi Arabia and M&G
Next month, funds from Saudi Arabia and M&G’s Catalyst fund will be disclosed as part of a capital-raising effort that values Pragmatic Semiconductor at approximately £500 million.
Strategic Funding for Pragmatic Semiconductor
A rapidly expanding British semiconductor manufacturer is in negotiations with blue-chip investors, including asset management behemoth M&G, to infuse £200 million in funding.
Pragmatic Semiconductor, a manufacturer of inexpensive microchips for applications in apparel and packaging, is nearing the conclusion of a significant funding round supported by funds from Saudi Arabia.
A significant portion of the new funding, according to city sources over the weekend, would come from M&G’s Catalyst fund, which invests in technology-driven enterprises.
Diverse Investor Support
Prosperity7 Ventures, an entity affiliated with the Saudi energy conglomerate Aramco, provided financial support for Pragmatic’s most recent share offering late last year. According to one source, either Prosperity7 Ventures or Aramco had reached an agreement to partake in the new funding round.
“Invest in your future with Webull UK – get started with free shares.”
Northern Gritstone, a university spinoff vehicle, and the UK Infrastructure Bank are reportedly among the new investors in the company.
One insider announced that they will announce the sale in November and value Pragmatic at £300 million pre-money.
A Bright Future for Pragmatic Semiconductor
The funding will constitute a substantial expression of trust in a business that is expanding at an accelerated rate to emerge as a major participant in the British semiconductor industry.
Cambridge, where Pragmatic is based, is growing alongside its 15-acre Durham headquarters.
Additionally, it intends to increase its manufacturing capacity in the United States. However, it refuted earlier this year rumours that it was devising a strategy to relocate from its British base.
Pragmatic processor integrated circuits are smaller than a hair and made without silicon.
Scott White, a prolific technology entrepreneur who started the company in 2010, appointed industry veteran David Moore as CEO earlier this year.
The proliferation of interconnected devices on a global scale has generated a substantial surge in the need for sophisticated processors, which has in turn spurred the exponential expansion of firms like Nvidia, which has achieved a valuation of $1 trillion (£823 billion).
Arm, the semiconductor designer that recently debuted on the New York Stock Exchange, and British Patient Capital, a subsidiary of the British Business Bank, are current investors in Pragmatic.
Pragmatic claimed its growth underscored the “strategic importance of [our] ground-breaking semiconductor technology platform at a time when governments around the world are focused on ensuring secure control of supply chains for critical electronic components” when it announced its £125 million (£103 million) Series C funding in December of last year.
In May, Prime Minister Rishi Sunak unveiled a 20-year strategy aimed at safeguarding the semiconductor industry of the United Kingdom over the medium term.
Ministers regard the National Semiconductor Strategy, an undertaking that may receive up to £1 billion in public funding, as an essential element of the United Kingdom’s forthcoming national security agenda.
Mr. Sunak stated that semiconductors rely on the devices we use on a daily basis and will be indispensable to the development of future technologies.
Our novel approach gives us an international competitive advantage by focusing on our strengths, such as research and design.
Saudi Aramco did not provide a response to a request for comment. Pragmatic, M&G, and Northern Gritstone all declined to comment.
Additionally, Lazard, the investment bank providing fundraising advice to Pragmatic, declined to comment.
