Xtera closes $52M private placement

 

9 August 2007 — Allen (TX): Xtera Communications, a privately held optical networking and services company, has announced the closuse a $52 million private investment 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, which took down approximately 50 percent of the offering.

 

"Xtera has exhibited strong financial results while incrementally growing the company. The latest private placement is not about funding current operations, rather it will be focused on strategic growth. We are extremely pleased that the Wellcome Trust has joined our existing group of investors," 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."

 

The Wellcome Trust is an independent, private foundation dedicated to advancing medical sciences by supporting research and other scientific and educational activities.

 

It includes an investment division that manages the Wellcome Trust´s assets, which has helped make the trust the world´s second richest medical charity after the Bill and Melinda Gates Foundation. In its last financial statement, for the year ending 30 September 2006, the fund reported net assets of over £13.4 billion ($26.8 billion).

 

Latest Articles

Dealer Support LIVE returns

UK trade publication Dealer Support is holding its annual LIVE event on 22 November. The event will take place at…

Tech Data expands in Costa Rica | Cainiao improves sustainability efforts | Success for Two Sides

US-based IT distributor Tech Data has opened a new Customer Lifecycle Management Services location in Escazú, Costa Rica. The facility…

Further sales declines at ADVEO

Troubled European office products and stationery wholesaler ADVEO has, as expected, reported a decline in sales for its third quarter.…