Amadeus Capital Partners has agreed a follow on round of funding for Transmode Systems AB, a pioneer of CWDM technology and a supplier of CWDM systems. The agreement envisages a minimum of €8 million in two tranches, and is intended to take the company to breakeven on its current operating plan. Amadeus led a first round funding of €7 million in April 2001. European Equity Partners, who are existing investors, are also investing in this follow on round.
Transmode Systems, based in Stockholm, has developed a world leading Coarse Wavelength Division Multiplexing (CWDM) system and is now experiencing strong growth in sales. The additional funding will be used to develop new features on the existing product as well as to expand the global sales organisation, allowing Transmode to continue to take market share from its competitors. In spite of, and to some extent because of, the depressed state of the telecoms equipment market, CWDM is gradually gaining acceptance as a low cost and efficient alternative to DWDM in cities and towns.
“This financing will allow us to grow our business and be even more aggressive in pursuing the opportunities that our CWDM system is opening up for us. We see it as a major achievement to have attracted this money in the current market”, says Isaac Olasoko, CEO of Transmode.
“Transmode is a very impressive company that has developed a product suitable for a large number of applications, including media and enterprise networks, as well as applications from the traditional telecom sector. We are confident that Transmode can continue to win quality customers across the globe”, says Hans Blomberg, General Partner of European Equity Partners.
Commenting on the company’s growth and prospects, Amadeus Director Hermann Hauser said: “Here is a company achieving sales of its products in a very difficult market because it is focusing on cost effective and fast ways of transmitting data in metropolitan environments that enterprises and carriers, cutting costs as they are, cannot afford to ignore. I am hugely impressed with Transmode’s dedication to and achievement of growth in this market. We believe the company has a strong future and look forward to helping them achieve their objectives”.
About Transmode Systems AB
Transmode Systems (www.transmode.com) is a CWDM pioneer, with expertise in datacom and telecom networking, optical technologies and network management systems. Since 2000, Transmode has focused on CWDM as a key optical technology to fully exploit the existing networking protocols. Transmode has been shipping CWDM systems since March 2001 and has today customers in the European, US and Asian markets.
About European Equity Partners
European Equity Partners (EEP) (www.eeplp.com), with offices in London and Paris, is a venture capital firm providing capital to companies in Northern Europe. EEP pursues a thematic approach to investing, focusing on sectors where significant growth opportunities exist. To date, EEP has focused on telecoms, IT and healthcare opportunities where the companies have international scope and world leading products.