Magritek, which makes magnetic resonance imaging and nuclear magnetic resonance devices, has attracted Wellington-based investment group Rangatira as an investor.
Rangatira has taken a 12 per cent stake in the manufacturer and marketer of benchtop MRI and NMR instruments for an undisclosed sum, with the option of increasing investment to 18 per cent in a year. MRI uses strong magnets and the resulting interpreted signals to determine the internal properties of objects, including humans. NMR has wider physics and chemistry applications to understand the make-up of rocks, liquids and other products.
Magritek, which counted the late Paul Callaghan as a founding partner, has targeted the production of smaller machines for application in the petrochemical, education and other markets.
Rangatira's investment would enable Magritek to significantly increase its overseas sales and marketing effort following the recent launch of the US$50,000 to US$100,000 "Spinsolve" Benchtop NMR spectrometer, the company said.
"This is going to be the cornerstone of growth for us," said Magritek chief executive Andrew Coy.
"It lets you measure liquids, look at what's inside.
"Spinsolve has met with a very encouraging market response, particularly from chemists in the pharmaceutical, food, polymer, petrochemical and education industries by providing a ... offering in a convenient package at a very competitive price."
Coy said the capital injection would allow Magritek, which has doubled its turnover approximately every 18 months, to grow more quickly, including opening a new office in the United States.
Rangatira's chief executive, Ian Frame, said Magritek's technology was underpinned and protected by world-class intellectual property.
Europe and the United States each accounted for about 40 per cent of Magritek's revenues, though the company - about a third of whose staff have PhDs - was forecasting significant growth in China and India in the near future.
Frame said: "We like to think our investment will enable Magritek to help achieve its founder Sir Paul Callaghan's vision of creating a niche high-tech sector capable of transforming New Zealand's culture and economy."