Abingdon-based Sophos Plc, the designer and developer
of data security software and winner of the 3i 1996 Quest for
Growth award, has 3i as a new shareholder. The Thames Valley office
of 3i, Europe's leading venture capital company has invested £2.5m
to enable founding investors Sir Martin Wood and Oxford Seedcorn
Capital Ltd to realise a proportion of their shareholding.
Founded in 1986 by Peter Lammer and Jan Hruska, Sophos
manufactures advanced anti-virus software for the corporate market.
The company's unique virus detection technology provides complete
protection across all major network and client operating
systems.
The number of viruses is increasing at the rate of over 400 per
month, partly due to increasingly powerful desktop applications
which have lowered the expertise needed to write viruses, and
partly due to PC usage - currently growing at 20% per annum. Sophos
has a 25% share of the UK corporate market with key export markets
in the US and Germany where Sophos subsidiaries have been set up.
Local distribution offices have also been set up in Japan and
France, in addition to the 30 distributor companies representing
Sophos worldwide.
Following consolidation in the sector, Sophos is one of the
world's top five independent companies providing anti-virus
software, and operates in a global market which, according to a
recent study by Gartner Group, is worth $404 million per year.
Commenting on the deal, Peter Lammer said: "We were proud to win
the 1996 3i Quest for Growth competition and are delighted that 3i,
with whom we have remained in close contact since, have decided to
come on board. The timing is perfect - the market continues to grow
and the opportunities for independent anti-virus providers are
exciting. We are delighted to have the support of 3i as we continue
our quest for growth. "
Ian Lobley, director of 3i, who made the investment on its
behalf said: "Sophos is one of the most highly regarded companies
in its sector, founded and led by two formidable people in Peter
Lammer and Jan Hruska. The company has enormous potential to go
even further in this market, where they have already built up an
excellent reputation, and 3i is delighted to back this first-class
winner."
Sophos is headquartered in Boston, US and Oxford, UK. More information is available at www.sophos.com.