May, 2002 : divine Secures Over $61M in New Equity Financing
📅 - Enterprise solution provider divine Inc. (divine.com) announced on Thursday that it has secured more than $61 million in equity financing from a group led by venture capital firm Oak Investment Partners.
divine says the investment, combined with its ongoing expense reduction efforts, positions the company to reach profitability by the fourth quarter with substantial cash reserves.
"The divine management team is very proud of the progress we have made so far, and customers are responding enthusiastically both to our vision of the extended enterprise and our best-of-breed products and services that address this market need," said divine chairman and CEO Andrew Filipowski. "Oak Investment Partners shares our belief in the exceptional potential of this market and the ongoing consolidation opportunities, and recognizes divine's leadership position in it. This investment from Oak provides divine with funding sufficient to carry out our strategy and is principally intended to assure customers of our strong financial position."
Oak Investment Partners and other investors have agreed to purchase over $61 million of preferred divine stock, convertible into common stock at $6 per share. The investors have agreed to purchase approximately $23 million in convertible preferred stock of divine immediately, and an additional $38 million after divine's shareholders approve the second purchase. At the funding of the second purchase, the investors will also receive warrants to purchase approximately $9.5 million in divine stock.
After conversion of the convertible preferred stock and warrants into common stock, and the completion of divine's reverse stock split, the investors will acquire approximately 3,823,000 divine common shares in the first purchase, up to approximately 6,333,000 shares in the second purchase and will have the right to purchase 1,583,000 shares by exercising the warrant.
"divine has assembled the right mix of enterprise applications and service offerings to address a significant opportunity in the emerging extended enterprise market," says Fredric Harman, general partner of Oak Investment Partners. "This opportunity, combined with our confidence in the divine management team's ability to execute, makes divine a very attractive investment for Oak. We are impressed with the market position divine has established to date and believe this additional financing round provides the company with a strong capital base to achieve its financial and business goals."
divine also says that, because of the success of its acquired businesses, it expects to be able to reduce annual expenses by an additional $40 million in the second quarter. This is in addition to the previously announced $45 million in consolidation savings achieved during the first and second quarters.
divine says the investment, combined with its ongoing expense reduction efforts, positions the company to reach profitability by the fourth quarter with substantial cash reserves.
"The divine management team is very proud of the progress we have made so far, and customers are responding enthusiastically both to our vision of the extended enterprise and our best-of-breed products and services that address this market need," said divine chairman and CEO Andrew Filipowski. "Oak Investment Partners shares our belief in the exceptional potential of this market and the ongoing consolidation opportunities, and recognizes divine's leadership position in it. This investment from Oak provides divine with funding sufficient to carry out our strategy and is principally intended to assure customers of our strong financial position."
Oak Investment Partners and other investors have agreed to purchase over $61 million of preferred divine stock, convertible into common stock at $6 per share. The investors have agreed to purchase approximately $23 million in convertible preferred stock of divine immediately, and an additional $38 million after divine's shareholders approve the second purchase. At the funding of the second purchase, the investors will also receive warrants to purchase approximately $9.5 million in divine stock.
After conversion of the convertible preferred stock and warrants into common stock, and the completion of divine's reverse stock split, the investors will acquire approximately 3,823,000 divine common shares in the first purchase, up to approximately 6,333,000 shares in the second purchase and will have the right to purchase 1,583,000 shares by exercising the warrant.
"divine has assembled the right mix of enterprise applications and service offerings to address a significant opportunity in the emerging extended enterprise market," says Fredric Harman, general partner of Oak Investment Partners. "This opportunity, combined with our confidence in the divine management team's ability to execute, makes divine a very attractive investment for Oak. We are impressed with the market position divine has established to date and believe this additional financing round provides the company with a strong capital base to achieve its financial and business goals."
divine also says that, because of the success of its acquired businesses, it expects to be able to reduce annual expenses by an additional $40 million in the second quarter. This is in addition to the previously announced $45 million in consolidation savings achieved during the first and second quarters.
Reads: 1018 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/div053002.cfm
Want to add a website news or press release ? Just do it, it's free! Use add web hosting news!