Joint Investment with Carphone Warehouse
NewMedia SPARK PLC
2 March 2000
NewMedia SPARK announces £5 million joint investment with
The Carphone Warehouse's Wireless Internet Portfolio
in DATAROAM, to create Europe's first B2B Wireless
Application Service Provider
The Carphone Warehouse's $50m Wireless Internet Portfolio
('WIP') and NewMedia SPARK plc ('SPARK'), the AIM quoted
investment fund, announced today their first joint
investment of £5m in DATROAM, a UK based start up Wireless
Application Service Provider (WASP').
DATAROAM's business strategy is to extend the emerging
Internet-based Application Service Provider business model
to the mobile communications market to create Europe's first
WASP. DATAROAM will host, manage and implement packaged
software solutions, which will allow companies to
communicate more efficiently with their staff in the field
enabling them to provide higher service levels to customers
at a lower cost. DATAROAM's customers will gain
demonstrable business benefits through the use of affordable
mobile solutions accessed over the Internet.
DATAROAM's services will be provided over the existing
mobile networks and the Internet deploying WAP and other
emerging technologies. As current European mobile networks
are upgraded to GPRS (2.5G) and subsequently to UMTS (3G),
the mobile data market is set to grow rapidly and is
forecasted to be worth £6 billion* by 2010 in the UK alone,
equivalent to the size of the fixed voice market today.
DATAROAM's will position itself to be the leading
independent data service provider using these broadband
networks.
DATAROAM, was formed in November 1999 by Simon Gibbs who
previously worked as Director of Strategy at Cable &
Wireless plc, and includes senior industry executives from
Compaq Digital, PWC and United News & Media. The Board
includes Simon Gibbs and David Moody from the executive
management team as well as Sir Michael Jenkins, Vice-
Chairman of Dresdner Kleinwort Benson as non-executive
Chairman, Bruno d'Avanzo, formerly COO of GTS and Michel
Coucke, Head of Heidrick and Struggles' European telecoms
practice as non-executive directors.
DATAROAM will use this £5m first-round investment to launch
its services in the UK and plans to raise additional
financing to scale the business across Europe.
The Wireless Internet Portfolio and SPARK have each invested
£2.5m in DATAROAM. This represents the largest single
investment either company has made to date. In addition,
this is the first time the two companies have made a joint
investment and they anticipate working together in future
investments in the wireless sector.
Simon Gibbs, CEO of DATAROAM, commenting on the company's
plans, said:
'Europe is on the edge of a mobile Internet revolution which
will have a profound impact on the way businesses operate.
DATAROAM will be at the forefront of these developments,
making the business benefits of the mobile Internet
available to mid-sized companies, their customers, suppliers
and employees.'
Commenting on the investment, Mike Whitaker, CEO of SPARK,
said:
'The growth prospects for wireless Business to Business
services are very substantial, and we are pleased to have
the opportunity to invest in a pioneering company in this
field with a highly credible management team. We are also
pleased to be working with The Wireless Internet Portfolio
on this investment and we look forward to further co-
operative investments with them in the future.'
David Ross, COO of Carphone Warehouse, said:
'This represents a great opportunity to invest in an
outstanding management team, in a sector which we understand
well. We are well placed to add value through our industry
knowledge and understanding of the commercial applications,
and our experience in rolling out our business across Europe
will be of great value to DATAROAM.'
Lovells and Barchester Ventures advised DATAROAM.
* Source Arthur D Little
____________________________________________________________
For further information, please contact:
New Media SPARK
Michael Whitaker 020 7851 7777/
07776 8555944
Dan Conaghan 020 7851 7777/
0370 380573
Lisa Baderoon, Buchanan Communications 020 7466 5000
The Wireless Internet Portfolio
The Carphone Warehouse Press Office 0207 622 5549
Andrew Wessels 0771 253 1100
DATAROAM
Simon Gibbs, CEO 0700 393 3399
David Moody, CFO 07971 610050
Sarah Roberts, GCI Focus 0207 398 9800
Notes to editors
DATAROAM
The Board of DATAROAM will consist of
Non-executive Chairman: Sir Michael Jenkins, vice-chairman
of Dresdner Kleinwort Benson
Non-executive director: Bruno d'Avanzo, former COO of
GTS and Intelsat
Non-executive director: Michel Coucke head of European
Telecoms practice, Heidrick &
Struggles
Founder and CEO: Simon Gibbs, former Director of
Strategy, Cable & Wireless
CFO: David Moody, former Group
Development Manager, UNM
New Media SPARK: Dan Conaghan
The Wireless Internet
Portfolio: Andrew Wessels
NM SPARK
DATAROAM is the 18th investment by NewMedia SPARK since its
shares began trading on the Alternative Investment Market on
28th October 1999. SPARK's present portfolio (in which it
has invested a total of approximately £12m), comprises
sharheoldings in Digital Animations Group, Bridge4u,
Linkguard, Watchmyprice, Skillvest, Firebox, Crocus,
Mergermarket, Synaptics, Purple Voice, Travelstore, Rainbow
Network, Clipserver, and Wireless Commerce Limited,
Funplanet and Jetweb. In addition, one investment, easier!
Plc, has been sold for a profit of £2.75m.
The Wireless Internet Portfolio
The Carphone Warehouse Limited has earmarked $50 million to
The Wireless Internet Portfolio (WIP), which provides capital
to early stage wireless web opportunities. The Carphone Warehouse's business
strategy is to take advantage of its existing reputation
in the communications market place and to become a major
player in the European wireless Internet market. In ten
years it has grown to be a major European force with its
customer focussed approach. This has proved to be a winning
formula across a number of markets in Europe, with 800
stores across 14 countries.
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