Last close As at 06/08/2026
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Market capitalisation
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Research: TMT
Federated Wireless has completed a $13.7m Series C extension round to accelerate expansion of its connectivity-as-a-service partnership with Microsoft Azure and Amazon Web Services, first announced in February 2020. Pennant Investors, an existing investor, and Allied Minds each invested $6.85m to accelerate the roll-out of the leading private 4G/5G wireless cloud solution as well as to enable expansion of the spectrum controller for private wireless networks into the 6GHz band for 5G services. This extends the total Series C raise to $65m. Following the investment, Allied Minds owns 36.6% of Federated Wireless on a fully diluted basis (43.1% undiluted). We calculate Allied Minds’ holding in Federated Wireless alone to be worth 26.3p (fully diluted) versus the closing share price on 20 April 2020 of 24.7p.
Written by
Allied Minds |
Federated moving towards commercialisation |
Portfolio update |
Investment companies |
19 February 2020 |
Share price performance
Business description
Analysts
Allied Minds is a research client of Edison Investment Research Limited |
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Allied Minds’ portfolio company Federated Wireless has announced new connectivity-as-a-service (CaaS) offerings with Microsoft Azure and Amazon Web Services. This brings to market the first private 4G/5G wireless cloud solution, offered as an end-to-end managed service. These parallel announcements herald a trial period, with initial commercialisation expected towards the end of FY20, but with meaningful revenues expected to build in subsequent years. Having only received FCC approval for initial commercial deployment of CBRS in September 2019, commercialisation has proceeded more quickly than anticipated, underlining Federated Wireless’s first-mover advantage in the US. Allied Minds has also recently completed payment of a special dividend of 12.62p per share (£30.5m in total) to shareholders, from the sale of its stake in HawkEye 360.
Period |
Ownership adjusted value (OAV) (US$m) |
Parent-level net cash (US$m) |
NAV |
NAV/share |
P/NAV |
12/16 |
415.8 |
136.7 |
552.9 |
208.0 |
0.19 |
12/17 |
395.6 |
84.2 |
479.8 |
150.0 |
0.26 |
12/18* |
226.7 |
50.6 |
277.3 |
88.8 |
0.44 |
06/19** |
266.1 |
31.3 |
297.3 |
94.7 |
0.41 |
Note: NAV is calculated as fair value plus net cash at the parent level. *FY18/H119 NAV is based on our estimate of fair value as this is no longer disclosed by the company. **H119 net cash and NAV are adjusted for post period-end investments.
Federated Wireless has announced new connectivity-as-a-service offerings with Microsoft Azure and Amazon Web Services. This brings to market the first private 4G/5G wireless cloud solution, offered as an end-to-end managed service. Having only received FCC approval for initial commercial deployment (ICD) in September 2019 (following completion of its $51m Series C investment round), commercialisation has proceeded more quickly than anticipated, underlining Federated Wireless’s first-mover advantage in the US. Federated Wireless has more than 30 customers offering live commercial services and another 50 at development stage. Customers include: Verizon, Charter, American Tower, Airspan, Boingo Wireless, Cambium Networks, Cradlepoint, Contour Networks, Ericsson, ExteNet Systems, Geoverse, JMA Wireless, Landmark Dividend, Motorola Solutions, Nokia, Samsung, Telrad and Wave Wireless.
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Research: Investment Companies
Mutares (MUX) specialises in restructuring distressed companies and expects new opportunities to arise amid the current crisis caused by the coronavirus outbreak. STS’s plants located in China have returned to operations and MUX’s focus in terms of current restructuring actions is in benefiting from the end of lockdown and improved economic activity. In 2019, MUX was particularly active in M&A, with 10 investments announced, including six new platforms. These resulted in significant gains on bargain purchases and a solid EPS increase. Consequently, management recommended a €1.00 dividend per share for FY19, translating into an attractive 9.3% yield. MUX’s liquidity was strengthened with the recent €50m bond issue.