Kiwi firm wins investment backing

By Stephen Ballantyne

Friday 6th December 2002

EMS-Global, an Auckland-based provider of sophisticated internet services that does most of its business in the UK, this week won a substantial injection of capital from a leading technology investor.

TMT Ventures, the corporate venture-capital programme seeded by Telecom New Zealand and jointly managed by leading local venture-capital investor Direct Capital and US-based private equity investor Advent International, is to contribute $5 million toward EMS-Global's future growth.

According to EMS-Global managing director Waynne Dartnall, the investment will help the company expand into continental Europe.

In return for its investment TMT will become a shareholder in EMS-Global, in an arrangement similar to last year's when Europe's largest technology venture capital investor, 3i Plc, took a share in the company.

"We have a very strong business in New Zealand and one of the things that TMT brings us is a good presence domestically," Mr Dartnall said. "Also, TMT's relationship with Advent gives us a lot of leverage and knowledge about the US market."

Direct Capital managing director Ross George noted the investment was particularly significant given the general downturn in telecommunications over the past year.

"This will be our third co-investment with 3i we look for good management and good technology that you can take to markets larger than New Zealand.

"EMS-Global has a product and a service suite that works, is established in New Zealand and has a fantastic channel to market through British Telecom. One way or another the stars were lined up for TMT and EMS-Global to get together."

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