Dynarc Secures $8.5 Million in Private Placement
09:58 a.m. Jul 12, 1999 Eastern
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 12, 1999--Dynarc, a
leading provider of next generation optical IP and multiservice network
solutions, today announced it has completed a private placement
transaction with a select group of institutional investors.
The successful placement brings in $8.5 million to the company, excluding
costs.
Proceeds from the additional capital will be used to strengthen and grow
the sales and marketing efforts in North America and in Sweden and to
continue investing in research and development to maintain Dynarc's
technological leadership. The company plans for an IPO during the year
2000.
"We are very pleased with the results of our private placement as this will
drive our company closer to our future IPO goals, aggressively increase
market share for us in new markets and globally deliver our technology
edge to network operators," said Olov Schagerlund, CEO and Co-Founder
of Dynarc.
Dynarc's customers are carriers and service providers. Due to new
requirements from customers, global deregulation and advanced technical
developments, operators have been forced to rethink their strategy. In
order to increase and maintain market share and generate profitability,
operators, today, must invest in new network infrastructure. Thus, the
market for affordable and flexible network products is growing rapidly
worldwide.
To strengthen the operators' competitiveness, Dynarc offers
high-performing switches for all-optical IP networks. The switches are
based on the unique DTM (Dynamic synchronous Transfer Mode)
technology developed by Dynarc. With DTM, the operators can
effectively utilize the full capacity of fiber optical networks. And, at the
same time the operators can offer its customers more advanced and value
added services and management features.
Recent Announcements
The company was founded in 1997 and has already begun marketing a line
of commercial multiservice switches to network operators. Among such
operators, Stokab is a Swedish provider of one of the largest metropolitan
fiber-optic cable networks in the world, and is currently evaluating
Dynarc's switches for the Stockholm City network. Dynarc currently has
about 10 reference installations using DTM.
In May, Dynarc entered into an OEM agreement with Ericsson Datacom.
Dynarc's distributed IP QoS networking technology will be integrated into
Ericsson's next generation Multiservice Access platforms. Ericsson will
also participate in the standardization of DTM. This strategic agreement
will provide Dynarc with royalty revenues starting next year.
Investment firm Hagstromer & Qviberg Corporate Finance advised
Dynarc on its successfully completed $8.5 million private placement.
About Dynarc
Dynarc expands the business opportunity spectrum and strengthens the
competitive position for communication service providers by offering
uniquely designed high-speed switches for optical IP and multiservice
networks. Dynarc's competitive edge derives from unique skills in DTM
switching and IP routing architectures, coupled with fast time to market.
Dynamic synchronous Transfer Mode (DTM), and in particular IP/DTM,
is Dynarc's solution for next generation IP and multiservice networks.
IP/DTM is a simple and unique solution for building scalable, reliable,
and high-performance networks for data, voice, and video traffic.
The company has offices in Sunnyvale, California and Kista, Sweden. For
more information, please visit the web site at dynarc.com or
contact Ilene Adler or Fran Bosecker, 415/288-0400 or e-mail
ilenew@pr-vantage.com. |
