Endace sale to US firm approved

CATHERINE HARRIS
Last updated 05:00 08/02/2013

Relevant offers

Industries

InternetNZ encourages broadband shoppers to look under the hood 'Grey' used imports to test Toyota NZ's recall repairs Sky TV customers won't be forced on to Vodafone, companies tell regulator Decision close on Okiwi Bay finfish facility Stuff is turning 16, and so is Ben New era for Lotus in New Zealand and Australia Laura Ashley closes NZ stores, owes creditors $2.3m Bic clicks into its 60th year in New Zealand Wellington businesses taking on accessibility challenge Vocus' Australian purchase throws water on 2degrees speculation

United States company Emulex Corporation has been given approval by the Overseas Investment Office to acquire Kiwi hi-tech firm Endace for $150 million.

Endace, a company which began life in 1995 at Waikato University, helps clients monitor vast amounts of internet traffic for security and traffic management.

The company listed on London's junior Aim market in 2005 but its management recently admitted the listing had not worked well.

The Emulex deal drew controversy in December when co-founder Selwyn Pellett said he had "very mixed feelings" about the sale because of the millions of dollars in government technology grants that Endace had received.

Pellett said it would have been better for taxpayers if the Government had given funding in the form of an investment rather than grants.

Only 17 per cent of Endace is owned by New Zealand shareholders, who will net $30m from the sale. Fairfax NZ

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content