ExteNet Systems, Inc. Closes $27.5 Million in Equity and Debt Financing
Palomar Ventures Joins as New Investor, Four Existing VC Investors Expand Participation
LISLE, Illinois—May 21, 2008—ExteNet Systems, Inc., a leading network infrastructure company, today announced it has secured an additional $27.5 million of equity and debt financing. The new capital will be used to build distributed antenna system (DAS) networks to meet the explosive demand for wireless voice, data and video services.
Palomar Ventures joined this equity round along with existing investors Centennial Ventures, Sevin Rosen Funds, Columbia Capital and CenterPoint Ventures. Dallas-based Comerica Bank is providing the revolving credit facility, which represents an additional financial milestone for the company.
Commenting on why Palomar Ventures chose to invest in ExteNet Systems, partner Kevin Jacques said: “Although Palomar typically invests in earlier-stage companies, we saw this as an excellent opportunity to invest in a more mature business that we believe has tremendous growth potential. Because I had previously been on the board, we felt that we knew the company and market well. Management has done a fantastic job building networks and forming carrier relationships. We’re excited about the additional market potential that new wireless services such as WiMAX and the newly released 700 MHz spectrum have created for ExteNet Systems.”
The funds will be used to support the acceleration of the company’s growth as it builds out a substantial number of new networks across the country. ExteNet Systems has signed contracts with nearly every major carrier and currently has networks operating or under construction in: California, Florida, Illinois, Massachusetts, Michigan, Nevada, New York, Ohio, Texas and Rhode Island.
“This round of funding is a testament to the confidence our investors have in our team as well as the market opportunities that are developing in this industry,” said Ross Manire, ExteNet Systems president and chief executive officer. “The wireless industry is embracing DAS networks as an integral part of network deployment because DAS is a smart way to improve network coverage and increase capacity. As a leading DAS provider that has been designing and building DAS networks since 2003, we are now well funded to gain additional market share.”
The company’s lender, Comerica Bank commented: “Comerica’s Technology & Life Sciences Division has extensive experience in providing innovative debt financing to growth companies with proven technology and strong management teams,” said William Bell, Comerica vice president. “We are extremely pleased to be able to work with ExteNet Systems, and we look forward to expanding our relationship as the company grows and its debt financing requirements expand.”
In conjunction with the equity financing, Palomar’s Kevin Jacques is rejoining ExteNet Systems’ board of directors.