Inflow raises $35 million in Private Equity

August 1, 2001 -- Managed hosting provider InFlow, Inc. has raised $35 million in additional private equity financing, the company said today.
The Denver-based data center operator also said it signed up 135 new customers in the second quarter, bringing its total customer count to 625. Inflow said its revenue grew by 19 percent in the quarter, driven by higher adoption of managed services by existing customers. The company said it expects to be profitable by the second quarter of next year.
The new funding included investment from First Union Capital Partners, Meritage Private Equity Funds, Spire Capital, DLJ Merchant Banking and Cornerstone Equity Investors.
Inflow said the money would be used for continued investment in the company's 18 operational data centers, and to develop additional e-commerce services for csutomers.
"Inflow's ability to raise capital in tough economic times is a recognition of Inflow's past and future successes in the marketplace," said Scott Perper, Managing Partner, First Union Capital Partners.
"This equity financing shows a company that provides world-class customer service has the support of the financial community," said Art Zeile, Inflow's chief executive officer. "Inflow now adds financial stability to a world-class service reputation."
In March, the company secured $75 million in debt financing from the Bank of Montreal, GE Capital Telecom and First Union National Bank. All told, the company has raised to more than $330 million.
Inflow offers a suite of services includes managed firewall solutions, data storage, applications, equipment and web site monitoring and load balancing. InFlow operates 18 data centers including more than 600,000 square feet of space, and has 500 employees.
"We continue to see demand in the market for our services," said Jim McHose, chief financial officer for Inflow. "Our managed services are gaining a lot of traction with enterprise-class customers. Attractive customer and revenue growth rates have-once again-allowed Inflow access to additional capital."