Transmode, a global supplier of packet-optical networking solutions backed by Amadeus Capital Partners, today announced that it has signed a new eight year contract with Virgin Media Business for ethernet-based mobile backhaul service delivery networks across the UK. Transmode estimates that the new contract is worth up to SEK 150m ($23 million) in 2011 and 2012; deliveries begin in the third quarter 2011.
Transmode had a successful IPO on NASDAQ OMX Stockholm in May this year, raising SEK 530m in an over-subscribed offering that capitalised the company at SEK 1.427 billion ($229 million), with a free float of 37%. Amadeus retains approximately 10% stake in the company. Transmode’s IPO was the first technology IPO in Stockholm since 2007 and a rare technology IPO on a European exchange this year.
The new eight-year contract with Virgin Media Business further enhances the carrier’s advanced nationwide fibre-optic network to help the company grow its market share in the mobile operator space. The deployment of Transmode’s optical networking systems will enable Virgin Media Business to offer Sync-E enabled mobile backhaul services to mobile operators all over the UK.
“Mobile operators increasingly need robust, powerful networks to underpin a superior customer experience, from excellent call quality through to accessing social networks on the move. As this sector continues to grow and evolve, it represents a significant opportunity for growth. Analysts estimate that by 2015 globally there will be a ten-fold increase to more than two million fibre-connected base stations. We believe that this is one of the biggest packet-optical based mobile backhaul projects in Europe and it will provide Virgin Media Business with a state-of-the-art platform for their Sync-E enabled, Gigabit Ethernet mobile backhaul services,” said Karl Thedéen, Chief Executive Officer at Transmode.
“The explosion of mobile data traffic due to the use of smart phones and other similar devices is driving the networks of mobile operators to breaking point. Working with Transmode we’re looking to transform backhaul networks by delivering a unique service that deploys fibre-based ethernet services to cell sites”, said Mark Heraghty, Managing Director, Virgin Media Business. “Working hand in hand with Transmode gives us the technical edge to ensure that any amount of data is never too much for the mobile operators to handle.”
Amadeus Partner, Simon Cornwell, added: “This is great news for Transmode and an endorsement of our confidence in the company since our first investment in 2001.”
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For further information, please contact
Chantal Ligertwood, PR for Amadeus +44 7976 229 210 chantal@ligertwood.net