Investee Company – Red-M (UK)
Investee Company Business Type – Supplies advanced Bluetooth? network product solution
Type of Financing – Development
Equity Providers – Apax Partners, Amadeus Capital Partners
Equity Leader (Individual) – Michael Risman, Apax Partners
Debt Providers – N/A
Debt Type – N/A
Debt Leader (Individual) – N/A
Equity Amount – £35 million
Total Deal Value – £43.6 million
Other Advisors – Bird & Bird
Comments – Red-M, suppliers of advanced Bluetooth? network product solutions have secured a $43.6 million investment from Apax Partners and Amadeus Capital Partners to accelerate R&D and expand sales and marketing operations. Red-M, based in Wrexham Springs, is a pioneer in mobile communication product solutions which enable wireless access to data and voice services within the workplace.
Hermann Hauser, Director of Amadeus Capital Partners said: “We believe that demand for Bluetooth? products will expand hugely over the next few years and that Red-M is well positioned to take early advantage of this exciting new market.”
Red-M was established as a start-up division of Madge Networks in 1999. The deal includes a cash payment of $8.65 million to Madge Networks N.V in exchange for Red-M shares, as a result Red-M is to become a separate company with Madge Networks retaining a minority stake.
Red-M is widely recognised as a leading innovator in Bluetooth? technology, having won the first ever Award for Innovation at the annual Bluetooth? Congress in June 2000 and recently awarded PC Magazine’s ‘Technical Innovation Award’. Michael Risman from Apax Partners and Hermann Hauser of Amadeus Partners are to join the Red-M board.
Michael Risman of Apax Partners said: “Red-M has a substantial lead in its segment of the Bluetooth? market. Red-M products manage the interface between the enterprise and numerous heterogeneous wireless devices.”
“We believe that new short-range radio infrastructure technologies, such as Bluetooth?, will emerge as a low cost platform for the launch of next generation wireless broadband applications and services.”