September 2006 -  Mobile Cohesion has raised new equity through a private placement to Enterprise Equity and other investors

Situation

• Mobile Cohesion (“MC”) is a UK based telecommunications software firm providing content management to mobile operators worldwide.
• MC’s HYDRA allows Operators, MVNOs and Aggregators to achieve partner relationships defined by their own needs and allows mobile operators full, real-time control of 3rd party content and applications.
• The ongoing operations of MC were based on VC funds being provided on a timely basis to support operating losses.

Approach

• ARC Associates (“ARC”) provided a strategic financial review and supported the outputs with ongoing advice.
• ARC reviewed and contacted both M&A and funding sources. Considerable emphasis was placed on seeking an industrial partner. It became clear however that the business needed more revenue visibility to attract industrial partners or investors. The approach then led to a fundraising process.
• The existing investors provided new interim facilities to the business which were incorporated into the funding round.
• ARC continued to advise the Company during the fund raising.

Transaction

• The Company has completed a private placement of $4.8 million in September 2006 by Enterprise Equity, a Northern Ireland based venture capital firm, the Company’s existing backers Cross Atlantic and Accel Partners, the Venture growth fund managed by Clarendon Fund Managers and other investors.
• The funds raised will be used to enhance the Company’s position as a relationship management solutions provider to mobile operators and develop the Company’s current customer base and grow in other geographic regions by attracting new customers.