$90 million dishes out to techs - including London-listed Endace

BETTER DAYS: Endace's recent performance on the London Stock Exchange's AIM index (AIM: EDA).

New Zealand technology company Endace will be the beneficiary of a Technology Development Grant worth up to $6.7 million over the next 36 months, the company said this morning in a statement.

The new grant was announced in the budget, backed by a $189.5 million fund, and the first $90 million in allocations were made today.

Other major recipients included the NZX-listed Rakon and Fisher & Paykel Healthcare, which each received $7.2 million.

The following privately-held companies also received $7.2 million:

• Gallagher Group (an electric fence maker)
• Tait Electronics
• Weta Digital
• Orion Healthcare
• Douglas Pharmaceuticals

Other big winners included Dunedin's Scott Technology ,which picked up a $3.8 million grant, and Christchurch companies Jade Software ($3.2 million) and Dynamic Controls ($5.28 million). See the full list here.

Minister of Research, Science and Technology Wayne Mapp said the new fund was all about "picking winners".

Give and take
In terms of state funding, it's been a good year for the London-listed Endace. In July, it received a $4.4 million Technology NZ grant.

The company has returned the complement by announcing plans to bring Asian manufacturing home to Christchurch, creating 10 jobs, and boost its Hamilton R&D team from 50 to 90.

The new grant, announced in Christchurch this morning by Hon Dr Mapp, Minister of Research, Science and Technology, will enable Endace to further accelerate its development of ultra-high performance packet capture and analysis systems; technology that helps computer networks run better, and more safely.

Monetising Kiwi intellectual property
Mike Riley, Endace chief executive said: "We're absolutely delighted to have received this grant and would like to recognise the support the New Zealand government has given Endace in the past and continues to provide today.

Research and development is the lifeblood of Endace and we're thrilled to see the government recognising and supporting organisations that have proven track records in creating and monetising Kiwi Intellectual property."

Protecting from cyber-attack
Endace products are used by government agencies, large enterprises and organisations that have the responsibility for protecting critical national infrastructure against cyber-attack.

Dr Richard Templer, acting Chief Executive, Foundation for Research, Science and Technology, says that Endace is a frontrunner in R&D.

“It’s no coincidence that Endace feature in the TIN100 list of leading technology businesses. Their commitment to innovation and expertise in using R&D to create products that have given them a competitive advantage have, in turn, benefited New Zealand.

“TechNZ support will ensure Endace have even greater financial certainty over the next three years and can just keep on doing what they are good at—developing innovative technology solutions that are in global demand,” Dr Templer says.

$189.5 million fund
The Technology Development Grant was announced in the May Budget as a new initiative to increase business investment in R&D, with $189.5 million available over four years. It is designed to support firms with a good track record in R&D and which spend a significant proportion of their revenue on it.

One of New Zealand’s most highly awarded and successful high-tech companies, Endace came from humble roots, formed from a latency research project in the School of Computing and Mathematical Sciences at the University of Waikato.

In 2001 the technology was successfully commercialised and Endace was formed to service Telecommunication Companies, Govern­ment Agencies and Fortune 500 organisations seeking to monitor, measure and secure their networks.

Endace became the first New Zealand company listed on the AIM (Alternative Investment Market) in the UK when it floated in mid-June 2005.

Over the last ten years Endace has seen significant growth and has evolved into a fully-fledged systems business focusing on the Cyber Security Monitoring and Financial Services markets.

Largest govt R&D investment ever
The Technology Development Grant is administered by the Foundation for Research, Science and Technology and is one of its investment products under TechNZ, the Foundation’s business investment programme.

In 2010/11, $92 million will be invested into 26 businesses in the high value manufacturing sector. This is the largest Government R&D investment into businesses ever.

The grant reimburses 20% of eligible R&D expenditure on a business’s R&D programme, up to $2.4 million (excl. GST) a year.

Grants will be awarded for three years, after which a business will have to reapply for a grant alongside other businesses. The final amount businesses will receive depends on their actual R&D expenditure over the next three years.

READ ALSO: Chief executive named for new Ministry Science and Innovation