Taikun, the lead elements of the 9984 landing in Hong Kong has now been joined by some heavier reinforcement with some horsepower in leadership ...
It looks like this consortium stands a good chance of taking a lead in Asian internet development. And w/ GE Capital on tap, what possibilities!
Asia Online Receives US$35 Million Venture Capital
Financing from J.P. Morgan Syndicate
-- New Funding to Support Softbank ISP's Pacific Rim Expansion --
Hong Kong (August 10, 1999) --- Asia Online, the Softbank Group's Asia-based Internet Service Provider (ISP), today announced the closing of US$35 million in private equity financing from a J.P. Morgan-led syndicate. Joining J.P. Morgan in the syndicate are Pequot Capital, GE Equity, Softbank Technology Ventures, Nexus Capital Partners and Concentric Network.
The new capital will fund Asia Online's acquisitions of Internet-related companies to create a network of businesses providing high quality Internet-solutions for corporate users throughout the Pacific Rim.
The company will seek to continue the success it has achieved in Hong Kong, where it is firmly established as the leading independent ISP. Outside Hong Kong, Asia Online has already captured the leadership position in the Philippine Web development market, and recently opened operations in Walnut Creek, California as the base for its Americas sales and marketing efforts.
The Internet pioneer, established in early 1995, is now set to extend its success around the Asia Pacific region through strategic acquisitions of a range of Internet-related entities, including ISPs, online service providers, web developers and web hosting companies. It is also proceeding to build new data centers and other facilities to help support the anticipated growth in demand for Internet-related services.
"With Softbank's backing of our initial plan to expand Asia Online's geographic coverage earlier this year, we have made significant progress in identifying growth opportunities," said Asia Online Chief Executive Kevin Randolph. "Now, with this J.P. Morgan-led syndicate behind us, there will be no stopping our drive to build the first Internet solutions company providing the convenience and efficiencies of the Web throughout Asia, as well as to people outside Asia wanting to do business with the region."
"To put this investment in a historical context, it is interesting to note that J.P. Morgan, which funded the expansion of the distribution system of the 1800's, the railroads, is now supporting the expansion of the distribution system of the 21st century, the Internet," said Randolph.
According to Randolph, the involvement of Concentric -- one of the world's foremost providers of value-added IP network applications and services -- will be of great strategic importance as Asia Online expands its presence throughout Asia. Meanwhile, Pequot Capital, GE Capital, and Nexus Capital add tremendous financial credibility to the organisation.
Besides expanding Asia Online's geographic scope, Randolph said the additional funds would also go towards enhancing existing services and bringing new, high-value products on stream. Each of these will fit into the company's objective of providing corporate customers with a full range of Internet business productivity tools, he said. Many of these products and services will be acquired from sister companies within the Softbank Group, which now includes more than 80 Internet-related entities -- among them Yahoo, E*Trade, Buy.com, Comdex, ZDNet, Verisign, Interliant and Net2Phone.
"The strength of the management team that has been assembled to take Asia Online through this next phase of development is impressive," said Karl Fooks, Vice President of J.P. Morgan International Capital Corporation, the private equity investing arm of the global financial services firm, J.P. Morgan. "Mr. Randolph has brought together a very high caliber group of experienced professionals from around the world, which gives us strong confidence in Asia Online's plan to provide services to those who wants to conduct business in or with Asia. We are moreover very excited to be part of the team with Softbank."
The Asia Online board of directors is comprised of co-chairmen Scott Russell and Brad Feld from Softbank Technology Ventures; Henry Nothhaft, CEO of Concentric; and Randolph. |
