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News
Issue #2001 - 17
(Apr. 2001)
(Updated
April 25, 2001)
ACQUISITIONS,
MERGERS & AGREEMENTS
Red-M Lands $43-Million in Funding
Even in the present
stressed-out high-tech market, every now and then a company comes
along to offer a ray of hope. This time its wireless start-up Red-M,
a subsidiary of equipment manufacturer Madge Networks, who is
basking in the glow of good fortune with a $35-million second round
of funding, including a cash payment to its parent company of
$8.65-million. The British company has raised the funds from Apax
Partners Funds and Amadeus Capital Partners.
Madge financed the start-up’s first round of funding, but with
this current round it has relinquished its majority shareholder
status to become a significant minority player.
Red-M makes access points and access services for Bluetooth
networks, for use in office buildings, public places, and homes. The
company is targeting organizations such as country
clubs and hospitals. This round of funding will enable the
British start-up to undertake its second phase of development in
establishing new technologies and product lines, all in an effort to
advance the Bluetooth networking market.
Despite the bad press that Bluetooth received at the recent CeBIT
conference, where the technology failed during high-profile
demonstrations, Red-M and its investors are optimistic about the
future of Bluetooth. In the words of Michael Risman, director of
Apax Partners, "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."
For more information: www.red-m.com/aboutredm/newsroom/content.asp?Article=37
Mobileinfo Comments and Advisory: Bluetooth
(IEEE 802.15) has the potential of giving a serious competition to
traditional and proven wireless LAN industry. because of its open
specification, large third party following and lower price point
objectives, It will lower the price for short-distance and campus
wireless LANs. So the funding is well-deserved. It also demonstrates
that right companies can get funding even in today's tight money
market.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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