Parkmead Regulatory News (PMG)

27 Apr 2005 07:01

Interregnum PLC27 April 2005 RNS Announcement - 27 April 2005 INTERREGNUM PLC Subsidiary Company Announces Merger and Intention to Float on AIM Interregnum plc ("Interregnum"), the technology merchant bank, announces todaythat it has reached agreement to merge its subsidiary companies, InterregnumWireless Holdings Limited ("IWH") and Cellular Design Services Limited ("CDS")with Red-M (Communications) Limited, with the intention of floating the combinedbusiness on the Alternative Investment Market (AIM) in the first half of 2005.The combined business will be named Red-M Group Limited ("Red-M"). This creation of one of the leading companies in secure wireless communicationsmarks a major advance in Interregnum's previously-declared strategy of acquiringprincipal stakes in technology businesses where it is able to work directly withmanagement to influence their strategy and operations and, ultimately, generateattractive returns for shareholders. The principal business of Red-M is the provision of wireless security softwareproducts and wireless design, implementation and consultancy services. Theseofferings help organisations to plan and manage their networks, particularly bymonitoring and controlling wireless activity in the airspace in and aroundbuildings. Red-M's core products comprise sensors and management software which generatesales and licence revenue plus recurring annual support and maintenance fees.Red-M's wireless consultancy, design and implementation services are sold on aproject basis with recurring revenues associated with maintenance and airspacemanagement services. Customers of Red-M include leading enterprises, governmentdepartments, network operators and landlords such as BAA and T-Mobile. The combined business will be well placed to address the fast-growing wirelessmarket through the provision of securely managed networks. It is estimated that80 percent of critical business processes will use real time mobile data by 2010(Gartner Group, April 2005) and that the broader segment of all WLAN mobiledevices will grow at a 300 percent CAGR between 2004 and 2008 (IDC 2004).Forrester Research estimated that the number of European web-enabled phone userswould total 220 million by the end of 2004 with a 56 percent penetration rate,compared to less than 1 million at the end of 1999. The growth in wireless usage is accompanied by a proliferation of wirelesstechnologies such as GSM, 3G, WLAN, WiMAX, Bluetooth, and TETRA. Thisconvergence of computer and telephony wireless networking is increasing thecomplexity of the wireless environment, leading to a greater need for secure,shared infrastructure and optimal management of networks. The new board of Red-M will include: • Michael McTighe (Chairman) is a non-executive director of Alliance & Leicester plc, chairman of Corvil Networks and a number of other technology companies, and was formerly Chief Executive of Global Operations at Cable & Wireless plc. • Karl Feilder (Chief Executive) was formerly the CEO of Red-M (Communications) Ltd. Karl is an expert in wireless technology and has a track record of developing software businesses. He co-founded Network Managers Ltd, which was sold to Microsoft in 1995. • Simon Saunders (Chief Technology Officer) was formerly the CEO of CDS. Simon is an expert in mobile communication systems, having written over 100 papers and a book "Antennas and Propagation for Wireless Communication Systems", on the subject. He is also the author of 15 patents spanning a wide range of wireless technologies. • Roger Jeynes (Non-Executive Director) who is the Chief Operating Officer of Interregnum. Interregnum owns approximately 45% of the issued share capital of the mergedbusiness prior to IPO and fund raising, with the other principal shareholdersbeing Funds advised by Apax Partners, Amadeus Capital Partners and Red-M'smanagement. Ken Olisa, Chairman and CEO of Interregnum, said: "The convergence of computerand telephony wireless networking is increasing the complexity of the wirelessenvironment, leading to a greater need for secure, shared infrastructure andoptimal management of networks. We believe that Red-M has the skills, products,experience and customer base to become a leader in this convergence." Karl Feilder, Chief Executive of Red-M, said: "Organisations across the worldface a new and growing threat from unauthorised access to their networks as theyare extended into the wireless arena. Red-M's products and services already helpto protect many leading corporations and government buildings in the UK and theUS. The merger with CDS and subsequent admission to AIM will further enhance ourcredibility and growth prospects." - Ends - Further enquiries: Interregnum 020 7494 3080Roger Jeynes Merlin (PR advisers to Interregnum) 020 7653 6620Vanessa Maydon 07802 961 902Rebecca Penney 07795 108 178 Red-M Group LimitedKarl Feilder 07979 954 807 Corfin (PR advisers to Red-M Group) 020 7929 8989Harry Chathli 07843 660 220Neil Thapar 07876 455 323 Notes to Editor •Interregnum plc (www.interregnum.com) is a technology merchant bank listed on London's Alternative Investment Market (symbol: ITR). Established in 1992, Interregnum buys, sells, advises, invests in and operates technology companies. Its advisory services include corporate finance, IP exploitation and commercial due diligence. The company's clients are principally corporates, government, technology entrepreneurs, advisors and investors. •Red-M Group Limited was formed by the merger of Interregnum Wireless Holdings Limited, CDS, and Red-M (Communications) Limited. •Interregnum Wireless Holdings Limited is the holding company for CDS and has no other significant assets. •Cellular Design Services (www.cdseurope.com) provides wireless network solutions for complex high-usage environments, with particular capabilities in shared infrastructure. Founded in 1995, CDS has enabled the design, deployment and successful management of several hundred 2G, 3G, PMR, WLAN and broadcast systems. In the 6 months to December 2004, CDS generated revenues of £2.3 million and pre-tax profit of £86,000 with net cash generation of £173,000. •Red-M (Communications) Limited is the European market leader in securely managed wireless technology, helping leading corporate and major government customers take advantage of the opportunities wireless presents while mitigating its inherent risks. Red-M won World Economic Forum technology pioneer status for the third consecutive year in 2004. This information is provided by RNS The company news service from the London Stock Exchange