Nettworx PLC floated today 21st December 2005 raising £9.4m net at 10p per share. It has a market cap of £11.1m at 10p per share. It is a cash shell backed by some big technology names such as Brent Hoberman of Lastminute.com, Jonathan Rowland of Jellyworks, Susan Meyer, Jason Drummond of Gaming Corp. and Allan Leighton.
These people have invested heavily themselves in this venture, and believe there is a market opportunity to create a business by acquisition to benefit from the convergence of the voice, video and data industries.
BskyB has just bought Easynet
NTL is trying to buy Virgin Mobile
Ebay has just bought Skype
BT has just launched the BlueRay phone
all these signify and are a result of a disruptive technology, Voice over IP, causing convergence between several other industries. Players are moving quickly to gain their position in this new market.
Now is the time to play this disruption, and build a business with infrastructure, and layers of services to place on top of that infrastructure, to create some serious value. I would not be surprised if the founders here would look to sell this on within 2 years, at a significant premium.
Several quoted companies are being looked at as acquisition targets and this may well prove to be one of the investment picks for 2006.
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