AppGate Secures $2.5 Million Investment

July 10, 2002 -- Application layer VPN solution developer AppGate (AppGate.com) announced on Wednesday that it has secured an additional $2.5 million in funding.

The new assets, provided by a group led by ABN AMRO Capital and GE Equity, will be used to focus efforts in sales, says AppGate, and expand services in concentrated technological locations to take advantage of a projected $871 million worldwide market for application-layer VPNs by 2005.

"This investment fuels our newly announced plans to further extend our global reach and support as AppGate positions itself to service the growing, worldwide market," says Samuel Simonsson, chairman of AppGate.

Along with ABN AMRO Capital and GE Equity, the $2.5 million financing round included investments from Pythagoras Participations cyba, Bure Equity AB and InnovationsKapital, all of whom had invested previously in the company.

"ABN AMRO Capital's add-on investment in AppGate reflects the bank's continued interest in the IT sector, and AppGate in particular," says Johan Bjurstrom, Managing Director of ABN AMRO. "We see AppGate as a leader in its area, and expect the company to capture a significant part of the growing e-security market. To achieve this, AppGate requires presence in markets where knowledge, visibility and key customers come together."