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. By 2007, the Company had 150 leading service providers worldwide as customers, launched its IPO on the TSE, and was acquired by Amdocs for $211 million.
Bridgewater was conceived to develop and deliver enterprise software that would enable mobile operators to provide profitable services to consumer, enterprise, cloud and machine markets. 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.
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.
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).
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 $211 M.