The North East of England cemented its status as a powerhouse for innovation and investment in 2025, with a series of high-value deals spanning technology, energy, engineering, and hospitality. This year-end round-up highlights the ten most significant acquisitions and financial injections that have reshaped the regional business landscape, demonstrating robust confidence from both domestic and international investors.
Major Investments Fuel Tech and Green Energy
Newcastle AI startup Literal Labs made headlines by securing a substantial £4.6m investment merely two years after its founding. The company, co-founded by academics Prof Alex Yakovlev and Prof Rishad Shafik, became the first Newcastle University spinout to attract funding from the Northern Gritstone investment fund. This landmark deal also saw participation from Mercuri, Sure Valley Ventures, Cambridge Future Tech SPV, and several angel investors.
In the renewable energy sector, a monumental £1bn Government-led investment turbocharged the new AESC battery plant in Sunderland. Located next to the Nissan factory, the facility launched a major recruitment drive to supply batteries for electric vehicles. The financing package included £350m in guarantees from the National Wealth Fund, £680m from a banking consortium, and a £150m grant from the Government’s Automotive Transformation Fund.
Further supporting the green transition, a landmark agreement involving Lloyds Bank, the North East Mayoral Authority, and the Office for Investment was announced in May. The collaboration aims to channel investment into the region's £160m North East Investment Zone, focusing on offshore wind, renewable energy, and electric vehicle manufacturing.
Significant Acquisitions Reshape Key Sectors
The region's engineering prowess was showcased when Ashington-based FES International was acquired in a £50m cash deal by global oil and gas supplier Hunting PLC. Founded over two decades ago by directors Rob Anderson and Ian Latimer, the offshore engineering firm now joins a London-based group with revenues of $1.5bn.
In a move that expanded its rail capabilities, Sunderland transport group Arriva acquired Yorkshire-based RTS Infrastructure. The deal includes a depot near Leeds Station and broadens Arriva's offering to include rail depot servicing and infrastructure works like platform upgrades.
The historic Northumberland firm Thompsons of Prudhoe, a family-run business since 1948, was sold to the Yorkshire-based Ashcourt Group. The company, which evolved from agricultural haulage into demolition, asbestos removal, and land remediation, marked the end of an era for the Thompson family.
Property, Hospitality, and Professional Services See Major Moves
Newcastle's skyline changed hands as Australian investment firm L1 Capital purchased the city's tallest building, Hadrian’s Tower, in a multi-million-pound deal. The 27-storey residential tower, developed by the now-administrated High Street Group, was listed for £14.6m.
In hospitality, Newcastle's Inn Collection Group secured a £125m finance package from HSBC UK to accelerate its UK-wide expansion. The group, which operates 31 sites including the Tynemouth Castle Inn, plans to grow its portfolio to over 40 locations in the next five years.
The legal sector consolidated as Ward Hadaway completed a merger with Teesside's The Endeavour Partnership LLP in July, creating a combined firm with 600 staff. The merger aims to provide clients with a broader range of legal expertise across the North East and beyond.
Finally, IT services firm Aspire Technology Solutions, a former North East Company of the Year, secured a major investment that values the business at approximately £200m. Backed by Lloyds Banking Group's LDC and new investor Federated Hermes, the company is targeting annual revenues exceeding £100m by 2030.
Collectively, these ten deals represent hundreds of millions of pounds in investment and acquisition value, underscoring a year of dynamic growth and strategic consolidation for the North East economy. They highlight the region's strengths in cutting-edge technology, advanced manufacturing, and energy transition, setting a confident tone for the future.
