Sunday 15 September 2019

Openet eyes €20m debt raise, carries out Facebook trials

Openet is carrying out trials with Facebook
Openet is carrying out trials with Facebook
Gavin McLoughlin

Gavin McLoughlin

Telecoms software business Openet has had exploratory talks to raise up to €20m of debt. The money would be used as working capital to fund new projects, with the company's management aiming to double revenue over the next three years. Last year, it took in almost €100m.

"We've certainly been exploring conversations with some of the debt providers on the European scene, basically somewhere between €5m and €20m," CEO Niall Norton told the Sunday Independent.

"We'd be basically looking for working capital to take on more people because some of these new initiatives, if they prove to have the traction we think they'll have in 2016, then we'd want to get some initial working capital to fund it."

He said they have a long-standing relationship with Kreos Capital and that the discussions had mainly been with that company.

"Technology is making the internet players require telco-grade software, so the addressable customer base will be probably growing all the time, and we're doing trials with guys like Facebook and other people. They're not particularly revenue-generating right now, but the point is that the technology needs that we serve have a broader base of customers," Norton said.

He said management was "very much focused on the basis of being a private company that continues to grow."

"Candidly I think the shareholders are pretty content to do it, because if we're more successful, then from a shareholder perspective we'd attract more interesting buyers."

Previously Openet mulled an IPO but did not proceed.

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