Endace poised to take AIM

New Zealand-registered network security venture Endace will become the first Kiwi company listed on AIM when it floats in mid-June.

Panmure Gordon is book runner, broker and adviser to a float that will bring in £14 million of ‘new’ money, and see existing investors sell up to £7 million worth of shares.

Fronted by ‘lifetime academic’ and chairman Professor Ian Graham, Endace, which has subsidiaries in the UK and USA, has a market leading technology that helps companies and governments guard against the rising tide of internet viruses and hackers.

Founded in 2001, the profitable firm designs and sells specialised network interface devices and systems for a market that is being driven by a rise in the volume and sophistication of attacks on the network and its users.

‘Internet crime is becoming more and more vicious, and criminal,’ argues Graham. He cites recent blackmail cases against online gambling companies as evidence of rising malevolence.

Endace trebled sales to £3.5 million in the year to March. The company boasts more than 92 customers in 16 countries, including government security agencies, blue-chip companies, large ISP companies and international telecommunications behemoths.

Graham claims growth to date has been constrained by a lack of capital and the funds raised on AIM will be invested in direct sales and support. ‘We chose AIM because of the sensible valuations it puts on tech companies,’ he adds.