& cplSiteName &

Ethernity Raises £15M From London IPO

Ray Le Maistre

FPGA-based processor specialist Ethernity Networks has raised £15 million (US$19.5 million) from an IPO on London's Alternative Investment Market (AIM) and says the funds will help it meet demand from major systems vendors that want to build their products around its data processing capabilities.

The Lod, Israel-based chip vendor began trading in AIM Thursday morning (stock code ENET) with a placing price of 140 pence per share, giving it a market valuation of £45 million ($58.4 million). By 1 p.m. London time the shares were trading at 152 pence.

The company says the proceeds will be used to: strengthen its balance sheet, so it can meet the "financial strength requirements" of major systems vendors such as Cisco Systems Inc. (Nasdaq: CSCO) that only want to deal with financially-secure suppliers; invest further in R&D; and invest in marketing activities and participate in standards group processes.

Want to know more about the companies, people and organizations driving developments in the virtualization sector? Check out Virtuapedia, the most comprehensive online resource covering the virtualization industry.

Ethernity's pitch to the market is that its field programmable gate array (FPGA) processors are far more suited to the high data traffic volumes and unpredictable demands of virtualized network elements than ASICs (application specific integrated circuits), as they can accelerate data processing, improve efficiencies (including lower power consumption) and offer greater flexibility in terms of adding new features quickly. The company claims that its processors "can be updated, upgraded or reprogrammed in line with future network or infrastructure demands and security requirements," making them very suitable for the hardware network elements that will underpin SDN and NFV deployments.

It's not a startup, though. While the introduction of virtualization into networks offers the prime opportunity for future growth, Ethernity Networks Ltd. has already built a business supplying its products for use in current networking systems. The company has been around since 2004 and says that its "software and firmware is already installed in over 400,000 systems globally in broadband access, mobile backhaul and Ethernet access applications."

Current customers include ADVA Optical Networking, Calix, Coriant, RAD Data, Telrad and more.

"We are delighted to be admitting to AIM today and that we had such a positive response to the fundraising from new investors," said CEO David Levi in Ethernity's official IPO statement. "The fundraising and AIM listing is a major moment for Ethernity that will put the business on a greater trajectory and address an exponentially growing market. We have game-changing technology that major global network operators are demanding and the listing will enhance Ethernity's profile and strengthen our balance sheet, which is essential in order for us to fulfil tier one supply chain requirements."

To find out more about Ethernity, check out this video interview with Levi that was recorded on a recent Light Reading trip to Israel:

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, International Group Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Blogger
6/29/2017 | 5:17:03 PM
Re: An IPO - such a rarity!!
A tech IPO in London is a rarity indeed and something to be welcomed even if it is on the junior (ie less regulated) stock exchange. Still this company has to grow a lot to justify the £45m valuation. Revenue for the last 3 years has been flat at $2.2m. I guess there is an expectation of a takeover baked into this IPO story. 
User Rank: Blogger
6/29/2017 | 10:54:26 AM
An IPO - such a rarity!!
Kinda fun and interesting to see an IPO, espceially by a comms networking chip firm. These folks really seem to know what they are doing on the tech front... now they have the challenges that come with being a listed firm, albeit on the less burdensome AIM.
Featured Video
From The Founder
Light Reading founder Steve Saunders grills Cisco's Roland Acra on how he's bringing automation to life inside the data center.
Flash Poll
Upcoming Live Events
March 20-22, 2018, Denver Marriott Tech Center
March 22, 2018, Denver, Colorado | Denver Marriott Tech Center
March 28, 2018, Kansas City Convention Center
April 4, 2018, The Westin Dallas Downtown, Dallas
April 9, 2018, Las Vegas Convention Center
May 14-16, 2018, Austin Convention Center
September 25-27, 2018, Denver, Colorado
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Trump Says Foxconn Will Make iPhones in US
Dan Jones, Mobile Editor, 1/15/2018
Net Neutrality Moves Are as Futile as Trump's Comb-Over
Iain Morris, News Editor, 1/18/2018
Huawei, ZTE Face US Federal Ban
Iain Morris, News Editor, 1/15/2018
Analyst: Verizon's Fixed 5G Is a Loss Leader for Mobile
Dan Jones, Mobile Editor, 1/16/2018
Ericsson Lurches to $1.8B Write-Down
Iain Morris, News Editor, 1/16/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed