5GM in £100m flotation

5GM, an e-mail security specialist aiming to emulate the success of Baltimore Technology, is preparing for a £100m flotation later this year.

5GM, an e-mail security specialist aiming to emulate the success of Baltimore Technology, is preparing for a £100m flotation later this year.

5GM - formerly known as Fifth Generation Message - started as a venture between 15 partners, including such notables as Microsoft, Lotus, IBM and Rank Xerox. Its calling-card is a series of applications which ensure that e-mails are secure from the prying eyes of unwanted third parties.

Its technology allows customers to order goods and services by e-mail, in the knowledge that the missive has been received without interference. The service, which is known as 5GM-Mail, is thought to be so secure that the relevant e-mails would be admissable as evidence in court.

The flotation, which is being handled by stockbroker SG Securities, will be a bonanza for investors who have nurtured 5GM from its origins in Harrow, north London. Netvest.com and eVestment, two internet incubators, and City of London PR Group are among the backers who will register spectacular returns on their investment.

Robert Zysblat, 5GM's chief executive, is predicting that about a third of the $300bn (£198bn) global market for delivering documents will soon transfer to the internet.

Mr Zysblat will be keen to emulate the success of Baltimore, its Dublin-based counterpart which is valued at almost £3bn. Baltimore, which has developed software for securing the transfer of payments over the internet, has attracted top customers and is expected to break even next year.