Contact:
Xtera Communications
Daryl Chaires, Marketing VP
+1 972 649 5187
dchaires@xtera.com
Aug 9, 2007
Allen, Texas - (Aug 9, 2007) – Xtera Communications announced today that it has closed on a $52 million private placement from a consortium of private investors and venture capital firms. The private placement was co-lead by existing investors New Enterprise Associates (NEA) and ARCH Venture Partners and by new investor Wellcome Trust of London. Wellcome Trust took down approximately 50% of the offering.
Xtera Communications is a privately held optical networking and services company. The company provides network solutions that enable communications companies to profitably deliver high-bandwidth tailored services at the lowest sustainable cost per bit. Over the last year the company has expanded both its customer base and its product portfolio. The company has successfully deployed its performance enhancing all-Raman technology throughout Europe, the Middle East, Asia, South America and North America. It recently announced the introduction of the world's first ultra-scalable line system to minimize network start-up costs without sacrificing the ultimate capacity of the network.
"Xtera has exhibited strong financial results while incrementally growing the company. The latest private placement is not about funding current operations rather will be focused on strategic growth. We are extremely pleased that the Wellcome Trust has joined our existing group of investors. The Wellcome Trust has a superior investment track record and will be of significant benefit to Xtera Communications as we grow the company," said Jon Hopper, Xtera Communications CEO.
Geoff Love, Head of Venture Capital Investments for the Wellcome Trust commented: "We rarely invest directly into companies, choosing instead to focus on investing as a limited partner in Venture Capital and Private Equity funds. However, Xtera is a compelling investment opportunity combining excellent management, proven financial results, strong IP in a growth market, and multiple opportunities for strategic growth. We subsequently made the decision to invest directly into the company."
The Wellcome Trust is an independent, private foundation dedicated to advancing medical sciences by supporting research and other scientific and educational activities. The fund includes an investment division that manages the Wellcome Trust's assets. This division is responsible for increasing the assets by investing in a diverse set of public and private funds, including equity financing to private companies. The trust is the world's second richest medical charity after the Bill and Melinda Gates Foundation. In its last financial statement, for the year ending September 30, 2006, the fund reported net assets of over £13.4 billion ($26.8 billion).
About Xtera Communications
Xtera Communications supplies innovative optical transport solutions enabling high-bandwidth service providers to offer profitable converged broadband services. Xtera delivers the industry’s only multi-reach OADM transport solution with the headroom to deliver abundant high-quality video, data and advanced voice services. Xtera’s multi-reach solution benefits regional, long haul, ultra-long haul and unrepeatered submarine applications. |