Spring Wireless Confirms $56 Million Round

Spring Wireless Inc., a Sao Paulo, Brazil-based provider of mobile telecom services in Latin America, has raised $56 million in Series C funding at a pre-money valuation of $110 million. peHUB had previously reported on the round, based on a regulatory filing. Backers include Goldman Sachs, New Enterprise Associates and Ideiasnet.

 

PRESS RELEASE

Spring Wireless (Spring), a leading company in mobile business solutions in Latin America, has just received a cash infusion of US$ 56 million from Goldman Sachs, the U.S. venture capital firm New Enterprise Associates (NEA) and Ideiasnet.

Spring was valued at US$ 110 million pre-money for this transaction and will have a post-money value of US$ 140 million. Using this valuation as the basis for calculation, the return for Ideiasnet shareholders since its investment in December 2004 is approximately 450%. Ideiasnet will continue to have a Board seat and will own 10.2% of Spring. It is the intention of the shareholders to take Spring public during 2009 through an IPO in the NASDAQ market.

The investment by NEA, the firm’s first in Latin America, and Goldman Sachs is the kind of transaction that Ideiasnet is pursuing for its portfolio as well as future opportunities: “We hope that this investment in Spring is the first of many deals that we do with NEA, Goldman and other big foreign investors and venture capital funds involving Ideiasnet companies,” said Luis Alberto Reategui, CEO of Ideiasnet.

SPRING WIRELESS – http://www.springwireless.com.br

Spring Wireless, elected as the best software company in Brazil in 2007 by Exame magazine, the leading business publication in the country, is growing very strongly and expanding at a fast pace internationally, with a presence in 16 countries currently. The funds raised will be used to accelerate such growth and expansion and for future acquisitions.

GOLDMAN SACHS – http://www.gs.com

Goldman Sachs, a global investment bank, leader in mergers and acquisitions, offers a broad set of services to a client base comprised of corporations, financial institutions, governments and high net worth individuals.

NEA – http://www.nea.com

New Enterprise Associates, founded in 1978 in the Silicon Valley, California, is one of the largest and most traditional companies of venture capital in the United States that invests, among others, in technology companies. NEA has been responsible for over 160 IPOs of companies in the USA since its establishment.

IDEIASNET – http://www.ideiasnet.com.br

Ideiasnet, a company whose shares are traded in the Bovespa (IDNT3), invests in companies operating in the Technology, Media and Telecommunications (TMT) sector. With the purpose of maximizing value for its shareholders, Ideiasnet helps the companies of its investment portfolio in defining strategies, financing, and mergers and acquisitions.