PacketExchange Ltd., a London-based provider of wide-area Internet exchange services, has raised $12 million in Series B funding. Return backers include DFJ Esprit and Bank of Scotland Growth Equity. The company also named a new CEO: Rick Mace, former chief operating officer of Tekelec Inc. (Nasdaq: TKLC).
PacketExchange, a leading provider of wide-area Internet exchange services, today announced it has closed $12 million in Series B funding. The round was led by existing investors, DFJ Esprit, Draper Fisher Jurvetson's exclusive venture capital partner in Europe and Bank of Scotland Growth Equity, part of the HBOS Group. In conjunction with the funding, PacketExchange also announced the appointment of Rick Mace to CEO to lead the company in its next phase of growth.
PacketExchange, which includes Microsoft among its customers, will use the funds to expand its current network operations and global reach, while continuing to grow its market share.
“PacketExchange has a proven and exciting business model that addresses one of the critical issues of today's Internet, which is guaranteeing high-quality service delivery of content,” said Paul Murray, Partner, DFJ Esprit. “This second round financing is a strong validation of PacketExchange's experienced management team, its product portfolio and international and North American track record.”
“The Series B funding further reinforces PacketExchange's growing market potential, and we look forward to working with PacketExchange in its next stages of growth and global expansion,” added Stephen Green, Director, Bank of Scotland Growth Equity.
Rick Mace joins PacketExchange with over 30 years experience in high technology with a proven track record of growth for a number of publicly held and private corporations. Prior to PacketExchange, Rick served as COO of Tekelec, Inc. (NASDAQ: TKLC), which he joined through the sale of Steleus Group, Inc., where he served as CEO and Chairman and engineered the group's eventual acquisition. Before Tekelec, Rick Mace was CEO of PakNetX, Inc., which was acquired by Aspect Communications in 2000.
Additionally, Rick was Vice President of Marketing and Sales of Digital Equipment Corporation's $6.2 billion Service Division and was founder of Bell Atlantic Network Integration, Inc. and Bell Atlantic Software Systems.
“The public Internet, once the enabling component of business growth, is rapidly becoming the constraint,” said Rick Mace. “Congestion is antagonistic to the customer experience. PacketExchange is a secure and affordable alternative to the public Internet backbone for businesses that rely on a quality customer experience to sustain growth.”
About DFJ Esprit
DFJ Esprit is a top-tier, European technology venture capital firm. Members of the DFJ Esprit team have been active in technology investing since 1985 and have experience of investing in over 130 companies and generating strong returns for investors through building valuable companies alongside the founders and management teams. The DFJ Esprit partners have invested in many of Europe's most successful venture exits of recent years, including Bookham, CSR, KVS, Filfactory, Alphamosaic, Blackspider, DRI, Neteconomy and Buy.AT. Over the last 17 months, DFJ Esprit has been one of the most active investors in Europe, making 23 investments in this period. The readers of Private Equity Online and Private Equity International selected Esprit as the European venture capital firm of 2006. In addition, Esprit won the Venture Capitalist of the Year Award 2006 at the UK Technology Innovation and Growth Awards. The DFJ Esprit group has offices in London and Cambridge, UK and invests across Europe. For further information, please visit www.dfjesprit.com.
About Bank of Scotland Growth Equity
Bank of Scotland Growth Equity, part of HBOS Plc, has a reputation for excellence in the provision of corporate finance, delivering innovative funding solutions across a range of markets. Bank of Scotland's Growth Equity team invests in fast moving companies with at least two years track record of sales growth. It usually invests up to