« Infineon spinoff's RFID software raises first round | Main | Edgeware versus Broadbus »
January 26, 2006
Mobile messaging tech firm draws private equity
Things are looking up in the technology sector as European buyout funds, which pretty much steered clear of the sector over the past few years, return. Either that or the fierce competition in less risky sectors is driving prices into the nosebleed area, making technology deals look more attractive.
Either way, Advent International has just taken a stake in Airwide Solutions, a vendor of text messaging servers, as well as cellular phone security software. The deal comes one week after Metris, a measurement systems company, announced raising Euro 30 mln to acquire three smaller rivals with GIMV, a Dutch private equity firm leading the round.
Airwide, which was founded in 2004 through the merger of Schlumberger's Messaging Solutions based in the UK and Taral Networks, a North American startup, mentioned plans to pursue "strategic opportunities" with some of the $25 mln it raised. The latter is VC-speak for making acquisitions.
Our moles say that doing a rollup won't be easy. The mobile messaging equipment segment is ripe for consolidation, comprised as it is of many smallish companies that often have only a single product. Others that have tried say the challenge is convincing business owners to give up control of their small businesses.
It is unusual for an investor like Advent not to take a controlling interest. For this investment, it shared the deal with Airwide's four earlier investors. More usual is the kind of deal it did late last year when it acquired a majority of Aircom, also active in the cellular network market, but more focused on network planning and management. Advent said itself that Aircom is a "platform" company, which means it will be adding to it through acquisitions to build a larger company.
Read - Airwide financing
Posted on January 26, 2006 12:03 PM | Posted to Venture Capital | Wireless | Permalink
Trackback Pings
TrackBack URL for this entry:
http://www.thealarmclock.com/mt/mt-tb.cgi/361
