Red Spider Technology Ltd (United Kingdom) - Dec 2007

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01 December 2007

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Bank of Scotland Corporate’s Growth Equity team (BOSGE) has led a £2.5m second round of funding for Red Spider Technology Ltd, taking a 13.33% stake in the business. BOSGE contributed £2m to the round, including an equity investment and some convertible loan notes, with the balance being provided by existing investors The Nova Technology Fund and the Scottish Enterprise Co-Investment Scheme, which initially backed the company in a £400,000 first funding round in 2005 (13 June 2005, page 21). BOSGE was attracted to the deal due to Red Spider’s strong management team and strong record of growth, which it aims to continue organically. Simmons & Company operated a competitive pitch process on behalf of the company. Red Spider was ranked sixth on an independent study into the fastest growing venture-backed companies in the UK, with BOSGE now invested in three of the top 10 following this transaction.

Company

Red Spider supplies a range of products that address various issues experienced in the upstream production of oil and gas. The company specialises in ‘downhole’ products, which add value for customers by increasing well life, reducing down time and increasing operational efficiency. The business was formed in 2003 and currently offers a portfolio of 22 products, generating annual turnover of just under £4m. Red Spider is based in Aberdeen, with additional bases in Houston, Dubai and Stavanger.

People

Malcolm Kpedekpo led the investment for BOSGE, Chris Oliver is the CEO of Red Spider.

Advisers

Company - Simmons & Co Aberdeen, Craig Lyon, Jennifer Simpson (Financial Due Diligence)Equity - Calash, Alan Evett (Commercial Due Diligence)Equity - HBJ Gateley Wareing, Andrew Ley, Mike Scott (Legal)Equity - Johnston Carmichael, Andy Walker (Financial Due Diligence)

Sourced from: UK & Ireland unquote" 359 (Dec 2007)