Bridgewater Systems, the leader in intelligent broadband controls, provides pre-integrated solutions for mobile and converged operators to transform their networks, optimize mobile data growth, and innovate with new services. More than 150 leading service providers worldwide leverage Bridgewater to create and deliver profitable services to consumer, enterprise, cloud and machine markets.
Company Creation
We created Bridgewater in 1997 as a spinout from Newbridge Networks in Ottawa, Canada. The purpose was to capitalize on the explosive growth in the adoption of mobile telephony and develop and deliver to leading wireless Service Providers real time software solutions that enable them to control how subscribers access networks, content and applications. The products would centralize, store and manage critical information that defines service entitlements, preferences and billing profiles for subscribers, ensure quality of service, and manage bandwidth utilization. The Company’s solutions enabled service providers to increase average revenue per user (“ARPU”), decrease ‘subscriber churn’, and lower operating costs.
Financing
We invested under $1 million in the early stages. The Company closed two subsequent financing rounds in 1999 and 2000, the latter at 4x our valuation. Since that time, the Company was able to finance its operations from cash generated from sales and advance payments on large contracts.
Growth
Bridgewater grew rapidly, forging relationships with over 150 mobile carriers in more than 30 countries, and reaching 150 million subscribers with cutting-edge technology. The Company also secured privileged OEM contracts with Alcatel and others. Revenues tripled every three years and ballooned even during the recession years to exceed $100 million in 2010. In conjunction, Bridgewater maintained healthy gross margins exceeding 83%. It was recognized as the industry leader, winning top rank as one of Canada’s Fastest Growing Technology Companies in Deloitte’s Canadian Technology Fast 50 Program (2005 and 2007).
Exit
In late 2007, we guided the company through a successful IPO on the Toronto Stock Exchange and participated in the financing. In 2011, Bridgewater was acquired by Amdocs for C$211 M. Our returns were 5.3x at IPO, and doubled in the following two years.