Cyantel gets ?1 million expansion funding

Investee Company – Cyantel (Ireland)

Investee Company Business Type – Develops location-based applications for mobile operators

Type of Financing – Expansion

Equity Providers – HotOrigin, Enterprise Ireland, Private Investors

Equity Leader (Individual) – David Dalton, HotOrigin

Debt Providers – N/A

Debt Type – N/A

Debt Leader (Individual) – N/A

Equity Amount – €1 million

Total Deal Value – €1 million

Other Advisors – Deloitte & Touche (Corporate Finance), Holohan & Associates, Brian O’Donnell & Associates (Legal)

Comments – Cyantel, a producer of location-based mobile applications has received a €1 million second round of financing from HotOrigin, Enterprise Ireland and several private investors.

Established in July 1999, Cyantel is headquartered in Cork, Ireland. The company specialises in the development of location-based applications for mobile operators worldwide. In April 2001 Cyantel signed a major contract with Vodafone Ireland for the provision of its fleet tracking application, E-Z-Manage. Vodafone Ireland commercially launched this product in September 2001.

Cyantel has developed 3 product suites to date that can be deployed on GSM, GPRS and 3G networks. The E-Z-Manage suite is targeted at corporate and business customers. E-Z-Track is a range of consumer and prepaid location-based services and E-Z-Mall is a wireless promotions solution enabling businesses to offer localised promotions to nearby consumers.

“We were very impressed with Cyantel’s proven ability to generate revenues and their strong relationship with alliance partners that are delivering real results,” said David Dalton, CEO of HotOrigin. “With their solution offering a low cost of entry for the operator and the ability to quickly drive increased average revenues per user, Cyantel have a compelling proposition for mobile operators, globally.”

“Already we have in place key components of our strategy such as major reference client and key alliance partners,” said Padraig Murphy, CEO of Cyantel. “This round of funding will enable Cyantel to build our management team in line with further expansion into European markets.”