Pod takes over Transmode

Stockholm-headquartered venture firm Pod Venture Partners has taken a 42% stake in Transmode, Sweden’s second largest telecom provider, for a price of US$26m.

The company is responsible for optical networking solutions for the transport of data, voice and video traffic based on CWDM and DWDM technology, which enables telecoms and internet providers to increase their bandwith with the need for more fiber.

Transmode Systems was founded in 2000 has raised a total of US$93m prior to Pod’s latest deal, receiving backing from British VC houses European Equity Partners and Amadeus Capital Partners, fund-of-funds HarbourVest, as well as Pod Venture and private investor Shamil Chandaria.

Chandaria has sold most of his stake to Pod – which previously held a 16% interest – and all of Transmode’s other investors have reduced their commitment to the company.