Amadeus et al. list Transmode

The IPO was several times over-subscribed and raised SEK 530m with the share price set at SEK 53 - the upper end of the initial price range. As part of the flotation Amadeus sold 35% of its stake in the company. Including net debt of SEK 206.5m reported for end of 2010, Transmode's enterprise value stands at SEK 1.63bn.

Previous funding
Amadeus Capital Partners together with European Equity Partners were the company's first institutional backers in a €7m round in 2001. They invested a further €8m in a second round of funding in 2003, when Pod Venture Partners also joined the investor consortium introduced to the opportunity by Transmode's CFO. In 2004, HarbourVest invested in the company and continued its support throughout.

Transmode merged with Lumentis, a business backed by Shamil Chandaria among others in 2005. Both management teams span out of Ericsson and benefited from a combination of technology expertise and strong sales orientation. A new funding round followed shortly after the merger, raising $12m in 2007.

Transmode raised the last funding round in October 2009 in which existing backer Pod Venture Partners increased its stake in the company to 42% by acquiring shares from fellow private and institutional investors. Among the vendors were Shamil Chandaria and European Equity Partners, which retain smaller stakes.

Company
Stockholm-based Transmode develops solutions to increase network capacity. The products and solutions are currently used to improve storage area networks, infrastructure solutions for mobile, cable and IPTV networks and in the delivery of Ethernet services, among other things. Its customers include network operators, service providers, large enterprises and public institutions. In 2010, the company reported EBITDA of SEK 122.1m on revenues of SEK 699m.

People
Simon Cornwell represented Amadeus on the transaction.

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