Venture fund keen on net firm

By ADAM GIFFORD

Venture capital fund TMT Ventures has bought a 40 per cent stake in fast-growing secure internet infrastructure provider EMS Global for $5 million.

TMT, which is on the shortlist to manage some of the Government's Venture Investment Fund, is a $100 million fund put together by Telecom New Zealand, Alcatel, Lucent and Marconi and financial investors.

The fund is managed by New Zealand-based Direct Capital and Advent International, a United States venture firm.

EMS Global chief executive Waynne Dartnall said the investment complemented the position taken last year by listed European technology venture capital investor 3i, which paid $5 million for 35 per cent of the company.

"The investment from 3i gave us international credibility. This year we looked for a New Zealand-based investor for diversity and because we are a New Zealand company," Dartnall said.

He said the cash ensured EMS Global had enough working capital to support growth.

This year the company grew about 60 per cent, and sales in Britain are increasing.

Dartnall said the company should be cashflow-positive by February.

Its biggest customer is still Telecom New Zealand, which sells its flagship EMS Cortex product under the Safecom brand.

In Australia, Telecom subsidiary AAPT sells it as SecurePoint, while British Telecom labels it Ultimus.

EMS Cortex is a secure internet protocol (IP) communication platform which service providers can sell to companies for safe and secure access to a range of network services and applications around the clock.

TMT Ventures chairman Ross George said it was the fourth investment his fund , which was now 22 per cent invested.

EMS

Direct Capital