The Maidenhead, UK-based company is thought to be looking to raise somewhere in the region of GBP 10m ($19m) to GBP 15m ($28.6m), which would give the outfit a value at IPO time between GBP 30m ($57m) to GBP 40m ($76m).
Speaking to ComputerWire, CEO Karl Feilder confirmed the funding raised would be used for R&D purposes and international expansion (it already has a UK and US presence).
The Red-M Group has been formed by the merger of Red-M (Communications), with Cellular Design Services (CDS), a subsidiary of the merchant bank Interregnum plc. However, Red-M itself has been around since 2000 when it was spun out of Madge Networks. Its previous investors (Apax Partners and Amadeus Capital Partners), as well the management, remain the principal shareholders of the new group. Simon Saunders, formerly CEO of CDS, becomes CTO.
Essentially, the outfit provides wireless security products and services, and specializes in preventing the hacking of wireless networks. Its wireless security systems comprise of sensors and management software, which generate sales and license revenue plus recurring annual support and maintenance fees. Red-M’s wireless consultancy, design and implementation services are sold on a project basis with recurring revenues associated with maintenance and airspace management services.
Organizations across the world face a new and growing threat from unauthorized access to their networks as these are expanded to the wireless arena. Red-M’s products and services already help to protect many government agencies and leading corporations, said Feilder.
Since 2000 Red-M has been quietly building up an impressive client base that includes some truly significant customers in the US according to Feilder. T-Mobile and BAA (British Airports Authority) are listed as clients, but it is known in industry circles that the White House and the FBI are also among its client base.
