PacketExchange receives investment to drive growth
2004-11-16
Bank of Scotland Equity has today announced an investment package of over $3 million in exchange for a minority equity stake in UK-based connectivity Company, PacketExchange.
Since its formation in 2001, PacketExchange has carved an exciting niche for itself in developing and implementing new communications services for organisations in order to minimise the inherent inefficiencies of the Internet – demonstrating to its customers‘ savings in both time and money whilst significantly improving the quality of their services.Commenting on the deal, Neil Ross, Director of Bank of Scotland Equity said:“The important factors for us were the strong management team and the proven track record of 7% growth month on month over the last two years. PacketExchange has a strong financial base, a robust business model and with our investment we believe it has real growth potential”.Despite the difficult telecoms sector, the Company has maintained impressive, triple digit year on year growth. Cash positive after 22 months and profitable since then, the Company has bucked the trend of so many start-ups in telecoms over the last few of years.Clients of PacketExchange include Microsoft, Telewest, Yahoo and Blue Square. Turnover for the current year will be in excess of $10m and is expected to more than double, again, in the coming year.Kieron O‘Brien, Chief Executive of PacketExchange explains that the cash injection will be committed to enhancing the sales infra-structure and continuing to bring innovative new products to market. Alongside these, the Company will embark on an acquisitive programme.
“This investment has given the Company the extra resource to accelerate growth and profitability in two ways” he says. “Firstly, organically - through increasing the coverage of the network and the launch of exciting new products. Secondly - through allowing us to look at broadening our service offerings and customer base through acquisition”.
