Software firm WANdisco looking to float on AIM and recruit staff

A SILICON valley software firm which has its European headquarters in Yorkshire plans to float on the Alternative Investment Market, it was revealed yesterday.

Sheffield-born David Richards, the president and chief executive of WANdisco, confirmed that the company is planning an initial public offering (IPO) in April or October next year.

Mr Richards also revealed that WANdisco expects to hire more staff at its base in the Electric Works in Sheffield as demand for its services grows.

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The company has appointed Nick Parker, the former chief executive of Sheffield Wednesday, as its new chief financial officer.

Mr Richards said: “Nick is used to working with high growth companies. He understands the importance of rolling your sleeves up. He did a great job sorting out the finances at Sheffield Wednesday.”

WANdisco is best known for its Subversion system, which is aimed at organisations that develop commercial software or administrative packages.

WANdisco’s software allows teams in bases spread around the world to use a company’s Wide Area Network to develop systems and software with high levels of security.

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In late 2008, WANdisco announced that it was moving its European centre from London to Sheffield, with help from Creative Sheffield’s Business Investment team.

The move showed that Sheffield’s expertise in the creative and digital sectors was gaining recognition in Silicon valley, the Californian home of companies such as a Google.

Over the last two years, WANdisco’s team in Sheffield has grown from three to around 40.

Mr Richards said his decision to choose Sheffield was motivated by cheaper operating costs, the wide availability of graduates, the area’s proximity to London, the good healthcare system and access to public sector grants, rather than any sentimental attachment to the city. Yorkshire compares favourably with India, which has built a massive IT outsourcing industry on its talented mathematicians.

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Mr Richards said: “The company plans to double in size over the next two or three years. We have recently closed a number of deals with firms such as Intel, GE and Motorola.”

Mr Richards believes the media has become obsessed with the fate of the financial services sector, which means high growth areas of the economy are often overlooked.

He added: “The US economy is in pretty good shape, particularly the technology sector. The next industrial revolution is in technology.

“Facebook and the other major players in the technology sector are hitting the ball out of the park. The technology sector is expected to grow exponentially over the next decade. We are also closing large deals with traditional US manufacturing companies.

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“The media seems to be driven by what’s happening in the financial services sector. The rest of us aren’t doing too badly, thanks very much. The technology sector is very strong – there’s too much focus on the banks. Everybody is saying the banks won’t lend. We are lucky because the founders of our business had a couple of successful exits.

“But the poor bloke sitting in his bedroom trying to be the next Facebook isn’t going to get funding.”

Mr Richards believes the Government could do more to help businesses grow, at a time of public spending cuts and a crisis of confidence in the eurozone.

He added: “The Government could help by giving a tax holiday. It’s not just about giving cash – it’s about providing a stimulus to small companies.”

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Mr Richards believes the concept behind Yorkshire Forward, the regional development agency, was a good one, but the organisation might have benefited from having more staff with experience of industry.

Yorkshire Forward gave the company a £500,000 development grant to encourage it to invest in staff in the region. Yorkshire Forward is being scrapped as part of the Government’s austerity measures.

Sheffield-born Mr Richards has more than 15 years experience as an executive in the software industry.

He holds a degree in Computer Science from the University of Huddersfield.

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Mr Richards sits on the boards of a number of Silicon Valley start-up ventures.

Before joining WANdisco, Mr Richards served as the president and chief executive of the technology firm Librados.

City honour for firm’s software

WANdisco has been awarded the Made in Sheffield mark for its uberSVN software.

WANdisco has become one of only three software developers to gain the accolade, which is awarded by a committee of local business leaders.

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The Made in Sheffield mark was recognised in law 400 years ago.

DAVID Richards, WANdisco’s chief executive said: “Being born in Sheffield and coming from a long line of steel people, this award probably means more to me than most.”