Transmode Lands Another $12M
The metro WDM company says the money will be used to add to its sales and development teams as it looks to capitalize further on an expanding market.
The optical equipment market is buoyant, and Transmode capitalized on the increasing demand for WDM transport equipment in 2006, when the company's annual revenues more than doubled to $54 million, from about $20 million in 2005. (See Transmode Sales Boost, Carriers Pumping Cash Into DWDM, Optical Equipment Sales Rise 20%, and Ericsson Builds Grameen Backbone.)
According to market projections from Heavy Reading, the Metro WDM market is set for continued growth in the coming years, growing from $1.6 billion globally in 2006 to $2.6 billion in 2010. (See Analyst Sees Booming Optical Growth.)
While Transmode isn't talking explicitly about listing its stock on the public markets, the company's marketing manager Jon Baldry notes that the company is "cashflow positive" and has "no further plans for any more funding rounds."
He adds: "At some point in the future the investors will naturally look at their exit options, one of which is being acquired, and another is an IPO. Or Transmode could remain an independent, privately-held company. This company has not been managed with an acquisition in mind."
The vendor has now raised $93 million from investors including Amadeus Capital Partners Ltd. , Harbour Vest Partners LLC , and European Equity Partners .
It has more than 150 customers, and has been especially successful in its home market of Scandinavia, and in the U.K. and Ireland. Now Transmode is looking to bolster its presence further in continental Western Europe and Eastern Europe, and has already started building local sales teams in countries such as France. (See Transmode Touts Euro Ranking.)
Transmode also announced that Eva Lindqvist, the former president of Telia Carrier , has joined the company's board as an independent director.
— Ray Le Maistre, International News Editor, Light Reading