A value of $180m has been placed on fast-expanding Swedish software house AU-System under a deal in which international banker, Schroder Ventures will become owner of 75% of the shares. Schroder not only acquired a 16% holding from LM Ericsson AB, but also bought the 47% stake held by Swedish national telco Telia and various smaller holdings. In total, Schroder is paying $135 for its holding, including $24m of new money for investment in new products and markets.
Stockholm-based AU-System is aiming to go public in two years and already claims to be one of EuropeÆs largest software specialists in telecommunications and datacommunications with annual growth rates of 40%-50% and revenues of $52m last year.
AU-SystemÆs transformation began two years ago when the company expanded from its core consultancy business into the market for internet security and smart cards. With a base in the worldÆs leading center for wireless telecommunications, and Ericsson as a substantial shareholder, it has been well-placed to exploit the rapidly expanding market for pre-paid mobile phones. The company now boasts customers in 40 countries.
Another big asset is its internet security subsidiary, ID2 Technologies Inc which has partnered with Microsoft Corp to provide smart card security software for a Windows environment after being awarded Cryptography Service Provider (CSP) status by Redmond. Schroder Ventures has also invested in ID2.
ID2 may also be destined for a stock market quotation and AU-System managing director Ulf Jonstromer says that after two years of heavy investment, it plans to go public with one or several of the companies in the group
