Sandvine AIMs for IPO
Although the company didn't include financial details in its listing document with the London institution, the vendor is believed to be aiming to raise around £20 million ($35 million) from the flotation.
Waterloo, Ontario-based Sandvine, which last May raised $15 million and which has raised more than $35 million to date, declined to comment on the impending listing. The company is believed to have taken a loss of $3 million from revenues of $15.8 million in the year to November 30, 2005, according to Canada's National Post. (See Sandvine Secures $15M.)
The company is well known for helping its more than 100 carrier and ISP customers to identify traffic, particularly viruses and bandwidth-hungry P2P traffic, on their networks and enable security and service management policies. (See Sandvine Releases Traffic Stats, Carrier VOIP Leads Study, Sandvine Warns of Threat Within, and Sandvine Wins 2 Cable Customers.)
Why list on London's AIM, though? Sandvine's investor list provides one potential answer: The company's biggest single investor, with a 22.67 percent stake at present, is Celtic House Venture Partners , which is headed up by Sir Terry Matthews. A number of startups backed by Matthews money have listed on AIM in the past two years, including session border controller vendor Newport Networks plc (London: NNG), SIP applications server firm Ubiquity Software Corp. (London: UBQ), and security technology vendor March Networks Corp. . (See We're in the Money and Ubiquity Plans London IPO.)
Sandvine's competitors include Allot Ltd. (Nasdaq: ALLT), Caspian Networks Inc. , and Ellacoya Networks Inc. . Another IP traffic management player, P-Cube, was acquired by Cisco Systems Inc. (Nasdaq: CSCO) in May 2004. (See Cisco Plucks P-Cube for $200M, KT Deploys Caspian, Allot Launches NetXplorer , and Ellacoya Finds Deep Packets Up North .)
— Ray Le Maistre, International News Editor, Light Reading