MobileAware, a leading provider of mobility solutions for operators and corporate enterprises, has secured second round financing of approximately EUR 7 million in a deal that will support the company past breakeven and into profitability.
The existing shareholders, which include Intel Capital and Cross Atlantic Capital Partners, will reinvest in MobileAware, with Cross Atlantic increasing its stake and leading the round. Bank of America Capital Partners and AIB Equity have also participated in the funding, making this the first investment by Bank of America in an Irish software company.
"Analysts are predicting unprecedented growth in the mobile middleware market over the next three years, driven by the huge revenue potential of mobile data services and the wide ranging productivity gains promised by enterprise mobility solutions," said Ted McCaffrey, chief investment officer, Bank of America Capital Partners. "With its very strong track record in the European market and superior technology offering, MobileAware presents Bank of America Capital Partners with an excellent vehicle through which to reap the benefits of this opportunity. Our decision to invest in an Irish software company has been based on MobileAware's proven ability to execute on international sales and marketing strategies and its potential to become a global player in this sector".
"The market for mobility solutions is on the brink of phenomenal growth and this investment reflects our efforts to secure a very large share of this global market going forward." said Gerry McCrory, managing director of Cross Atlantic Capital Partners. "The strategic importance of mobile data services to wireless carriers is driving early momentum in this space, but this is only the start. Very soon, people will stop talking about the mobile Internet because the Internet will be multi-channel - and that will be that. Our decision to increase Cross Atlantic's stake in MobileAware highlights the confidence we have in the Company becoming a leading international player in this very dynamic market", concluded Mr McCrory.
"This round of funding will help to accelerate Mobilaware's technological lead and establish us as a leading player in the provision of mobility solutions," said David McGeough, chief executive officer of MobileAware. "MobileAware's strength as an organisation, our technology lead in enabling multichannel portals and extensive market potential is reflected in the exceptionally high calibre of our investors, and we are confident that with our existing revenues and sales pipeline, this investment will take us past break-even and into profitability".
David McGeough was appointed CEO of MobileAware in December, after joining in February 2001 as Chief Operating Officer. David has been instrumental in strategically positioning the Company for international growth. In addition to developing long-term operational strategies to support a rapid pace of expansion, he has secured a number of major contracts with leading European telecoms operators such as Xfera Moviles (a Sonera, Vivendi, J.P.Morgan backed 3G operator in Spain) and with one of the world's leading network infrastructure vendors, Nortel Networks. David has overseen the build-out of MobileAware's European sales presence with the opening of offices in Germany, Spain and the UK.
Prior to joining MobileAware, David Mc Geough was a partner in one of Ireland's leading law firms, Matheson Ormsby Prentice, from 1993 where he was responsible for establishing and managing the Investment Funds practice and the Capital Markets practice of the firm. David was also responsible for the firm's North American business and played a key role in driving the firm's growth. He has acted as advisor to many of the world's leading investment banks and asset management companies including Goldman Sachs, JP Morgan, Salomon Smith Barney, Banco Santander Central Hispano and Soros
Fund Management.
IBI Corporate Finance adv
