April 30, 2003 -- Internet exchange service provider Equinix, Inc. said today that it has received a $10 million investment from Crosslink Capital, a private equity investment firm.
Company officials said the Crosslink investment, combined with last year's $30 million cash infusion from Singapore Technologies Telemedia should allow the company to fund operations until it becomes profitable.
"Over the past six months, Equinix has transformed its financial standing," said Peter Van Camp, CEO of Equinix. "The investments and cash that Equinix acquired at the end of last year allowed the company to significantly reduce outstanding debt and strengthen the balance sheet.
" With this new investment, Equinix will significantly increase operating cash reserves to a comfortable level for the long run," Van Camp added. "
As a part of the transaction, which is scheduled to close in June, Crosslink Capital partner Gary Hromadko will join the Equinix board of directors. The closing is subject to the approval of the company's stockholders and SEC clearance. Equinix said a proxy statement will be filed today with the SEC to seek shareholder approval of the issuance of shares to Crosslink.
"Equinix has many of the qualities that we look for in an investment opportunity: a position of market leadership, strong customer traction with well-respected companies, a demonstrated track record of success, and the vision, management team and financial stability to continue as a long-term leader," said Hromadko.
Crosslink Capital has invested in emerging technology companies since 1989. Currently, its venture investing activities are focused on the software, core technology/semiconductor and business services industries.
Equinix, based in Mountain View, Calif., provides core Internet exchange services that allow Internet infrastructure companies, enterprises and content providers to grow, manage and control their networks.