TIDMTMT
RNS Number : 4188I
TMT Investments PLC
25 July 2012
25 July 2012
TMT INVESTMENTS PLC
("TMT" or the "Company")
Investment in Backblaze, Inc.
The Board of TMT is pleased to announce the completion of an
investment in Backblaze, Inc. ("Backblaze"). Incorporated in
Delaware in 2007, Backblaze provides individuals and corporate
customers with online data backup solutions.
TMT has acquired 295,598 newly issued preferred shares, 7,478
existing preferred shares and 288,120 existing common shares,
collectively representing 9.86% of Backblaze's fully diluted equity
capital, for an aggregate consideration of US$2,500,759.
In addition, TMT has agreed to acquire, on the first anniversary
of the transaction, such number of newly issued and existing shares
in Backblaze as will bring TMT's fully diluted equity stake in
Backblaze to a minimum of 13.33% and a maximum of 19.05%, dependent
on Backblaze's performance, for an additional aggregate
consideration of US$2,500,759.
The agreements between the parties include pre-emption rights,
liquidation preferences, board observer seat and other rights and
protections in favour of TMT customary for preferred stock holders.
Definitive agreements for the transaction were entered into, and
the transaction was completed, yesterday.
Nowadays, photos, music, videos, documents and other data have
gone digital and are stored on laptops and desktops everywhere.
Based on Backblaze's research, approximately 46% of computer users
suffer a data loss incident every year. Unfortunately, according to
a study by research firm Harris Interactive conducted on behalf of
Backblaze, 90% of these people in the U.S. do not regularly back up
their data. Thus, this (often irreplaceable) information is
permanently lost due to hard-drive crashes, software glitches,
human error, and computers been lost or stolen. Backblaze's mission
is to help computer users solve this serious problem.
Backblaze offers a service that automatically and continuously
backs up all data from Mac- or Windows-enabled computers, over the
Internet, to Backblaze's data centre. The Backblaze service is
competitively priced, and generally costs US$5 per month per
computer for unlimited storage. When users lose data, they can
restore a single file, a folder or all their data by downloading it
from any web browser. For an additional fee, users can request a
hard or flash drive with their data to be mailed to them.
Backblaze's competitive advantages include a user-friendly
interface, a highly efficient cloud storage system and a recognised
brand.
Backblaze has individual and corporate customers in over 100
countries, for whom it currently stores nearly 40 petabytes of data
on its purpose-built cloud. Such well-known brands as IDEO, Crispin
Porter + Bogusky, ESET, Evolution Media, and UC Berkeley School of
Law are customers and partners of Backblaze.
Backblaze was founded by CEO Gleb Budman and his partners Brian
Wilson, Tim Nufire, Casey Jones, and Billy Ng, who previously
worked together for over a decade. The founders are serial
entrepreneurs who have built and sold internet-based businesses and
have a passion for developing powerful yet easy-to-use technologies
that customers love.
In respect of the year ended 31 December 2011, Backblaze's
unaudited profit before taxation amounted to US$202,471,and
unaudited net assets as at that date amounted to US$2,174,982.
Alexander Selegenev, Executive Director of TMT Investments PLC,
commented: "With its high-quality product and impressive growth
rates, we believe Backblaze is well positioned to become a leading
player in the sizable and fast-growing online data backup
market".
For further information contact:
TMT INVESTMENTS PLC +44(0)1534 281 843
Mr. Alexander Selegenev alexander.selegenev@tmtinvestments.com
www.tmtinvestments.com
ZAI Corporate Finance Ltd
NOMAD and Broker
Marc Cramsie/Irina Lomova 020 7060 2220
Kinlan Communications Tel. +44 (0) 20 7638 3435
David Hothersall davidh@kinlan.net
About TMT Investments
The Investment Policy & Strategy
The Company's objective is to generate an attractive rate of
return for Shareholders, predominantly through capital
appreciation, by taking advantage of opportunities to invest in the
TMT Sector. The Company aims to provide equity and equity-related
investment capital, such as convertible loans, to private companies
which are seeking capital for growth and development, consolidation
or acquisition, or as a pre-IPO financing.
In addition, the Company intends to invest in publicly traded
equities which have securities listed on a stock exchange or
over-the-counter market. These investments may be in combination
with additional debt or equity-related financing, and in
appropriate circumstances in collaboration with other value added
financial and/or strategic investors.
The Company is not geographically restricted in terms of where
it will consider making investments. It will consider any
geographical area, to the extent that the investment fits within
the Company's investment criteria. The Directors and Consultants
have expertise in emerging markets and, in particular, in Russia
and the Commonwealth of Independent States. The Company will not be
subject to any borrowing or leveraging limits.
Private Companies
The Company will target small and mid-sized companies and will
seek to secure at least blocking stakes and board representation,
where it considers that the Company and/or an investee company
would benefit from such an appointment. The Company will consider
making equity investments in lower than blocking stakes only where
it sees ways to increase the stakes to blocking or controlling
stakes at a later date. Each investment is expected to be at least
US$250,000.
The investments targeted by the Company will aim to support
rapidly-growing private companies to increase market share and
achieve long-term shareholder value. It is envisaged that if the
Company invested in a private company prior to that company listing
on a stock market, the Company would retain a part of its
investment in the listed entity going forward. The Company intends
to work closely with the management of each investee company to
create value by focusing on driving growth through revenue
creation, margin enhancement and extracting cost efficiencies, as
well as implementing appropriate capital structures to enhance
returns.
Public Companies
When investing in public equities, the Company will seek to
select companies with a dominant market share or strong growth
potential in their respective segments. No restrictions will be
placed on the size of public companies in which the Company may
make an investment. The Directors intend to make investments in
companies or businesses with attractive valuation, growth
potential, with competent and motivated management, which enjoy
brand recognition, have scalable business models, have strong
relationships with customers and have in place transparent
accounting policies.
Realisation of Returns
The Directors will, when appropriate, consider how best to
realise value for Shareholders whether through a trade sale,
flotation or secondary refinancing of the investee companies. The
proposed exit route will form a key consideration of the initial
investment analysis.
The Company expects to derive returns on investments principally
through long-term capital gains and/or the payment of dividends by
investees. The primary ways in which the Company expects to realise
these returns include: (a) the sale or merger of a company; (b) the
sale of securities of a company by means of public or private
offerings; and (c) the disposal of public equity investments
through the stock exchanges on which they are listed.
For private investee companies the Company believes that its
typical investment holding period should provide sufficient time
for investee companies to adequately benefit from the capital and
operational improvements resulting from the Company's investment.
The targeted holding period shall be reviewed on a regular basis by
the Company, but it is expected that this will typically be between
two to four years. For public equities the Company's objective is
to maximise capital appreciation. Following the acquisition, the
Company will continue to conduct extensive research and monitoring
of the investment. Importance will be placed on the timing of any
disposal which will follow a thorough review of market conditions
and those reports and sources that are available to investors.
Should the Company consider that the capital appreciation of a
particular public equity investment has reached its peak or is
likely to or has begun to decline, then the Company will consider
the sale of that investment.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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