Vic Morris of Vordel: "An awful lot of data is flowing through Vordel gateways. You have to be fast, with minimal latency."
In the news because: experienced a 90 per cent increase in turnover last year and is planning a flotation
Vordel plans to float within in the next two years after recording another strong year of growth in 2011.
Vordel chief executive Vic Morris said that the company management is now working towards an IPO and believes that it has sufficient momentum to warrant a flotation.
"The numbers are stacking up to make that credible," he said. "And certainly in the US, the IPO market for tech companies has reopened. There have been a lot of successful IPOs. The Nasdaq is one possibility for us rather than floating in Ireland or Britain, but we haven't made that decision yet."
Vordel has a number of venture capital investors behind it, including Elderstreet, BJM, Dresdner Kleinwort Wasserstein, Bank of Scotland (Ireland), the Hatton Investment Group, Intel Capital and Enterprise Ireland. Around 20 per cent of the company is owned by Irish interests. Whilst many Irish-based technology companies opt for a trade sale as the preferred means of exit for their investors, Morris said that the firm's board currently favoured an IPO.
"If you look at the engineers here who have put so much into the company, they don't necessarily want to be part of a much bigger company," he said. "Even though an IPO allows our investors to get a return, from a company point of view it is also a fundraising. That would allow us to continue our growth and increase momentum."
Driving Vordel's growth is two factors, the adoption of cloud computing and the growing number of mobile devices like smartphones and tablets arriving in the workplace.
"I've never come across anyone who has just wanted to use just cloud," Morris said. "They have their on-premises infrastructure, some of which is quite old, and they want to be able to connect that to the cloud. They want to create hybrid solutions that they can use with a range of devices and that's where we come in."
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