September 4, 2012 / 4:53 PM / 6 years ago

Canada's Accedian aims for IPO within two years

(Reuters) - Accedian Networks, a private Canadian company that makes devices to monitor and speed up data over computer and mobile networks, plans to list its shares in Canada and the United States within two years, CEO Patrick Ostiguy said.

Accedian provides the hardware and software that help the flow of data over the ethernet — pipes that connect many computers over a network — as well as services to help telecom operators use mobile bandwidth more effectively.

The company, backed by U.S. and Canadian venture capital firms including Summit Partners and RHO Capital Partners, has raised about $30 million since it was founded in 2004.

Accedian, which Ostiguy said has been profitable since 2009, does not release financial data but says it gets about 60 percent of its revenue from North America.

“We cannot yet say how much we would raise. We are currently in the planning stage,” Ostiguy said in an interview, adding that Accedian plans to hire a banker to advise on an IPO within 18 months.

The Montreal-based company does not plan to raise more capital before it goes public, he said.

Telecom service providers such as AT&T Inc (T.N) and Verizon Communications Inc (VZ.N) are experiencing unprecedented demand as consumers increasingly access the Internet over smartphones.

Companies such as Cisco Systems Inc (CSCO.O) and Alcatel Lucent SA ALUA.PA, as well as Accedian, are cashing in on the boom.

In North America, gigabit ethernet connectivity — connectivity that is 100 times faster than regular ethernet — is quickly becoming inadequate, Ostiguy said.

“Telecom providers are now building their own data centers, building their own cloud infrastructure,” he said, adding that these developments were fueling demand for Accedian’s products.

Accedian, which has about 250 customers across North America, Europe, Latin America, Middle East and Asia, has added more than 80 of those customers this year, Ostiguy said.

The company expects to add another 30 to 40 customers this year and another 100 next year, said Ostiguy who holds a bachelor’s degree in electrical engineering from Quebec’s Sherbrooke University.

Hiring has been a priority over the past two years as the company tries to keep pace with a growth rate of about 50 percent, Ostiguy said.

“We grew from 120 employees last year to 200 this year. We may hire a dozen more this year,” he said.

Accedian, which has manufacturing and reselling partnerships with Nokia Siemens Networks NOKI.UL, JDS Uniphase Corp JDSU.O JDU.TO and Ericsson (ERICb.ST), is looking to hire about 50 to 60 people next year, he said.

Editing by Ted Kerr

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below