TTP Communications PLC
13 March 2006
TTP Communications announces #8.5m million funding for
Cambridge, UK, March 13, 2006 - TTP Communications plc (LSE: TTC) today
announces the conclusion of a financing round for its subsidiary, ip.access
Limited ('ip.access'). A consortium led by Scottish Equity Partners (SEP), and
including Intel Capital and Rothschild Gestion, has invested #8.5 million in
ip.access. In line with TTP Communications' previously stated objectives, the
new funds will finance the expansion of ip.access' current successful
second-generation pico base-station business and the development of low cost
third-generation access points for use in homes and small businesses. It is
expected that the transaction will be completed within the next two weeks, at
which time TTP Communications' shareholding in ip.access will be 47.5% (42.0%
fully diluted). After completion, up to #2m further investment will be sought
by ip.access which will be used by the company to re-purchase shares held by TTP
Communications plc. If this repurchase goes ahead, TTP Communications'
shareholding in ip.access will reduce to 36.5% (32.3% fully diluted).
Tony Milbourn, TTP Communications Managing Director, commented: " ip.access'
revenues have exceeded our original expectations this year and are poised to
grow sharply again in the year ahead. Nonetheless, it became clear early last
year that if the business was going to capitalise on the technology lead that
our investment to date had given it, then it would need to extend its product
range to cover 3G and for this additional investment would be required. The deal
announced with SEP and its co-investors today will not only provide the
investment needed, it will also allow the business to continue to progress
through to profitability during the next twelve months. At the same time it will
allow TTP Communications to focus on its core business of developing technology
for wireless handsets. The new investors' track record of successful investment
in this sector endorses our belief in the future of the ip.access business and
gives us confidence that we can secure a satisfactory return on our investment
for shareholders in the longer term."
Stephen Mallinson, ip.access' CEO, added: "We are delighted to welcome SEP,
Intel and Rothschild to our shareholder base. The new investment will enable us
to accelerate the development of our 3G Access Point to allow operators to cover
homes and small businesses and provide converged fixed-mobile services at prices
competitive with fixed-line services where people live and work. It also helps
us to expand our GSM market, addressing new opportunities such as those opened
up by the forthcoming auction of 1800 MHz spectrum in the UK."
Founded in 1999, ip.access produces and sells globally the world's smallest GSM
base stations, designed to be deployed inside buildings to communicate with
operator's infrastructure using standard broadband IP links. The company has
enjoyed increasing success and its nanoGSM equipment is used by operators
including T-Mobile USA, Telfort (Netherlands), Spring Mobil (Sweden), Smart
(Philippines), and Eurotel in the Czech Republic. In 2004 the company signed a
global Original Equipment Manufacturer (OEM) agreement to allow Siemens Mobile
to distribute nanoGSM as part of its enterprise portfolio.
At 31 March 2005, the most recent statutory reporting date of ip.access Limited,
the company reported gross assets of #4,699,000 and losses before tax for the
year then ended of #4,593,000.
In the transaction, Strata Technology Partners and Taylor Wessing advised TTP
Notes to editors
About TTP Communications plc
Based in Cambridge, UK, TTP Communications plc (LSE:TTC) is a holding company
that controls three organisations involved in different areas of mobile
TTPCom Limited (www.ttpcom.com), its primary operating subsidiary, develops
intellectual property used in the design and manufacture of wireless
communication terminals and its licensees include leading semiconductor and
terminal manufacturers worldwide.
TTPCom Media Contacts:
Tel: +44 (0) 1763 266266
TTPCom Investor Contact:
Tel: +44 (0) 1763 266266
Tel: +44 (0) 20 7367 5106
This information is provided by RNS
The company news service from the London Stock Exchange