12/29/2003 - Nallatech - leading developer of FPGA systems - has secured £2 million in a second round of funding from existing investors, 3i and Scottish Equity Partners. 3i has invested £1.5 million in this round, with a further £0.5 million invested by Scottish Equity Partners. Both invested identical amounts in Nallatech’s first investment round in 2000.
The new round of funding will be used to fuel a concentrated sales and marketing push into the US marketplace in 2004, building on the company's existing base of blue chip customers.
This next intense phase of the company's development will be further boosted by the appointment of new chairman, Iain Robertson - currently also the chairman of Cambridge Semiconductor Limited - to the Nallatech board.
Nallatech is one of the world's most innovative companies in the technically challenging FPGA (Field Programmable Gate Array) systems market. The versatility of these programmable systems makes them suitable for many technology applications where performance requirements are extremely high and flexibility and speed to market are critical, e.g. next generation mobile telecoms infrastructure.
Nallatech has achieved a reputation as a world leading developer of FPGA solutions and has established a base of blue chip customers in key market sectors, including telecommunications, defence and imaging.
Now, as Nallatech gears up for this next phase in its development, it will be building on these first successful inroads into the market by investing in US - and European - sales operations. This will ensure that the company maintains its recent rapid sales growth over the next two years.
"We are delighted to receive this second round of funding," said Allan Cantle, President and CEO of Nallatech. "With Iain coming on board as well, this is an exciting time for the company, as we shift our focus from developing innovative product solutions to building a global market position."
"We are delighted to able to back Allan and his team in a further round of funding," said Robin Marshall of 3i. "Nallatech has demonstrated the ability to not only produce world class technology but to sell that product into a very competitive global marketplace."
Gordon Beveridge, of Scottish Equity Partners' IT team agreed, adding: "This is a good example of a strong company that has steadily built its business over the last three years, ignoring the ups and downs of the technology marketplace and concentrating on developing both first rate technology and strong customer relationships.
"As we've worked with the company over the last three years we've seen that the management team has been focusing not just on building good technology, but also a very good business. Nallatech is in a strong position in a fast growing marketplace. We look forward to seeing them becoming a dominant global player in that marketplace."
Nallatech is the world's leading supplier of high performance FPGA systems. The company provides flexible, easy to implement solutions for Data, Communications, Digital Signal, and Image Processing. Customers benefit from lower costs, reduced power consumption and improved performance in end markets including Telecommunications Infrastructure, Aerospace and Defence, Imaging, and Scientific Computing.
As was announced earlier this week, with a growth performance of 472% over the last five years, Nallatech has achieved the ranking of 268 in Deloitte’s European Technology Fast 500.
3i brings capital, knowledge and connections to the creation and development of businesses around the world. It invests in a wide range of opportunities from start-ups to buy-outs and buy-ins, focusing on businesses with high growth potential and strong management.
3i invests in businesses across three continents through local investment teams in Europe, Asia Pacific and the USA. To date, 3i has invested over £15 billion (including co-investment funds).
About Scottish Equity Partners
Venture capital group Scottish Equity Partners (SEP) specialises in investments in emerging growth technology companies throughout the UK.
SEP (www.sep.co.uk) is one of the largest independent private equity groups in the UK, and is currently investing from a venture capital fund in excess of £100 million, which is backed by leading UK and European institutional investors. Typically, it invests between £500,000 and £5 million in early stage and growing companies, principally in the information technology, communications, healthcare, biotechnology and energy sectors.
With offices in Glasgow and London, SEP is one of the most active venture capital investors in the UK and has a strong investment track record. Its current portfolio includes the rapidly growing wireless technology company Cambridge Silicon Radio, and Cyclacel, the Dundee-based cancer therapeutics company.
Recent high profile successes include Edinburgh-based Wolfson Microelectronics, which achieved a valuation of £250 million when it floated this October.
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