Oct 05, 2010, 09.33 AM IST
Acision, the mobile-data company whose technology delivers almost a trillion text messages a year, has raised USD 100 million of new funding from its owners, led by Russian born billionaire Len Blavatnik.
The company, whose systems are used by eight of the 10 biggest mobile operators, said the fresh capital will help it invest for growth as devices like Apple Inc's iPad drive a huge increase in mobile-data traffic.
Basil Geoghegan, Acision's newly hired corporate development officer, said the main impetus for fresh funds was not its major lender, the now-nationalised Anglo Irish Bank.
Instead, he said the bulk of the funds would be used to fund acquisitions, partnerships, and capital expenditure agreements.
"We don't know when the economy's going to turn but we want to make sure we're well-placed when it does turn," Geoghegan told Reuters in a telephone interview.
"We are very focused on mobile data, and managing and controlling mobile data. We believe that is the real next step for the operators," to boost profitability, he said.
Blavatnik, who was valued at USD 7.5 billion by Forbes earlier this year, is Acision's largest shareholder via his company Access Industries.
In the United States, he is being sued by creditors of LyondellBasell, who say he knew the USD 12 billion leveraged buyout that created the now-bankrupt petrochemicals company would fail.
The other investors, who are also contributing new funds to Acision, are Irish private equity firm Atlantic Bridge, and the International Investment and Underwriting (IIU) vehicle of Dermot Desmond, the Irish billionaire who once owned London City Airport.
Newspaper reports touted Acision as a possible initial public offering (IPO) candidate earlier this year. But Geoghegan said the plan had never been very advanced and an IPO was not "needed in the short term."
Acision was formed after Atlantic and Access led the 2007 buyout of the telecoms products business of LogicaCMG, now known just as Logica, for 265 million pounds.
Acision's clients include Russia's Vimpelcom. It competes with China's Huawei Technologies Co Ltd and Hong Kong-listed ZTE Corp.
It cites Cisco research that predicts a 39-fold increase in global mobile data traffic from 2009 to 2014.
Tags: Acision, Apple Inc's iPad, Anglo Irish Bank, mobile operators, Access Industries, initial public offering, Huawei Technologies, ZTE Corp, Vimpelcom
Video of the day
Dec 6 2013, 15:02
- in MARKET OUTLOOK
Dec 4 2013, 11:08
- in FII View
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.