Swedish venture capital fund STING Capital has completed its first exit ? a new Nordic WiMAX company is formed

“It is highly satisfying to announce that our first exit has been completed with the young WiMAX company HULU, which the fund invested in early in 2008. The deal is a good example of two exciting, but strongly niched, Nordic companies merging to create a successfully packaged offering with both services and products”, says Martin Gemvik, Investment Manager at STING Capital.

“As a result of the merger with Gipz, we will become one of the most comprehensive suppliers of WiMAX systems. We can now take control of the entire value chain, which makes us far more competitive compared with acting as two independent minor players”, says Hans Davidsson, CEO at HULU Sweden AB.

 “We are also planning to establish business in Sweden. HULU has unique know-how in WiMAX and is a real pioneer in the field. In addition, we also have the same attitude to how best to supply complete solutions”, says Jostein Eck, CEO at Gipz AS.

 The two companies are to start a joint effort in the Nordic region. HULU is to become a subsidiary and develop the technology, while Gipz is to become the parent company. In the longer term, the company is planning a global expansion, and sees significant potential on emerging markets, which lack access to fibre and copper cables.

HULU Sweden AB is a pioneer in WiMAX technology in Sweden and was awarded the Golden Mouse at the Mobile Gala 2007 as “New company of the Year”. HULU develops systems and products for both mobility and the “last mile fixed communication” with WiMAX. The company was founded in 2005 and has in recent years received active business coaching from the business incubator STING. The venture capital fund STING Capital invested SEK 2 million in the company in March 2008.

Gipz AS is today the largest player in Norway in wireless high-speed broadband in rural areas with almost 10,000 customers in 100 municipalities. Gipz sales are currently about SEK 90 million.

Jostein Eck, CEO Gipz AS and Hans Davidsson, CEO HULU Sweden AB