Endace sale to US firm approved
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