Development capital to expand product range and sales and marketing activities
December 19, 2005 - Red-M Group, a leading provider of services and products for managing wireless infrastructure, today announced the company has successfully completed a private equity investment round of £4.6m ($8.1m) led by Pi Capital. Other investors included Octopus Asset Management and existing investors, Funds managed by Apax Partners, and Interregnum plc.
Dave Richmond, Chief Executive Officer, Red-M Group said "The rapid increase in the use of wireless communications of many different types creates a need for organisations to manage the wireless activity in and around their buildings. This funding will enable Red-M to accelerate the development of our Total Airspace Management(tm) services and products, to help more customers make their airspace pay. Our unique ability to deliver these solutions is reflected in our quality customer base. In addition, this capital will allow us to build out our product range and extend beyond the U.K."
Red-M provides software products and services for the wireless market and designs, implements and manages wireless networks across the spectrum of commercially used radio frequencies for blue chip clients. The company was formed in April 2005 by the merger of Cellular Design Services (CDS), a wireless consulting services provider, and Red-M Communications, a vendor of wireless security probes and monitoring software.
Wireless is one of the fastest growing IT markets and Red-M products and services already have a proven track record with customers including airports operator, BAA, property companies such a British Land and Hammersons, telecoms operators including O2, T-Mobile, 3 and BT Wholesale, and government agencies.
Telecommunications industry veteran and Pi Capital member Richard Greco has been appointed to Red-M's board as a non-executive director and will move to become the Chairman in January. He has been involved in the telecommunications and technology sectors for more than 25 years. Most recently he founded Bulldog, a leading UK broadband provider, which he successfully sold to Cable & Wireless.
Paul Thomas, Managing Director of Pi Capital, said "The new management team are doing an excellent job of reinvigorating the business and their implementation of an exciting new sales strategy should provide a strong spur for further growth."
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About Red-M Group Ltd
Red-M designs, delivers and manages multi-spectrum wireless infrastructures in challenging environments, for mission-critical applications. The company's portfolio of services, delivered using a structured approach known as Total Airspace Management (TAM), is underpinned by unique software tools and products incorporating Red-M's specialist wireless knowledge. Red-M's TAM approach has been applied for major enterprises, network operators and the public sector. The Red-M Group was created by the merger in April 2005 of Red-M (Communications) Ltd and CDS Ltd, founded in 1999 and 1995 respectively. Visit http://www.red-m.com
About Pi Capital
Pi Capital is an independent private equity house investing in growing UK unquoted businesses. It specialises in smaller buyouts and expansion capital for businesses seeking £1.5 million to £5 million across a range of sectors. What makes Pi Capital different is that it represents a network of the UK's most successful entrepreneurs and business builders, whose diverse and unique contacts and skills can add real value to the companies Pi Capital supports, both during due diligence and post investment. Private investor Capital Limited is authorised and regulated b the Financial Service Authority. Further information can be found at http://www.picapital.co.uk
About Octopus Asset Management
Octopus Asset Management (http://www.octopusam.com/) is a leading fund manager and private equity investor into fast growing SME companies. Octopus specialises in providing £1 million to £5million of equity finance for management buy-outs, buy-ins and development capital for UK companies in transactions with an enterprise value of typically up to £20 million. Octopus, established in 2000, is one of the fastest growing fund management companies in the UK and is one of the largest VCT fund managers in the UK. Last tax year alone, Octopus raised over £50 million from around 6,000 investors in its range of VCT funds, and assets under management have now reached more than £100 million.
These funds include the Eclipse VCT, which was voted (by other venture capital firms) "New Venture Capital Fund of the Year 2004" and the Phoenix VCT which was shortlisted as "VCT of the Year 2004" and "VCT of the Year 2005" in the Investor AllStars Awards.
Octopus also provides an EIS portfolio service called Eureka, as well as an inheritance tax solution called The Octopus ITS.
About Apax Partners
Apax Partners is one of the world's leading private equity investment groups, operating across the United States, Europe and Israel. Apax Partners has raised or advised approximately $20 billion around the world. With more than 30 years of direct investing experience, Apax Partners' Funds provide long-term equity financing to build and strengthen world-class companies. It pursues a multi-stage equity investment strategy, investing in late venture, growth capital and buyouts.
Apax Partners' Funds invest in companies across its global sectors of Tech & Telecoms, Retail & Consumer, Media, Healthcare and Financial & Business Services. For additional information, see: http://www.apax.com.
Interregnum plc (http://www.interregnum.com) is a technology merchant bank listed on London's Alternative Investment Market (symbol: ITR). Established in 1992, Interregnum buys, sells, advises, invests in and operates technology companies. Its advisory services include corporate finance, IP exploitation and commercial due diligence. The company's clients are principally corporates, government, technology entrepreneurs, advisors and investors.