<What's up and why is this board so quiet??>
We're all afraid that if we breathe AFCI will fall over. Actually, this items looks like some good news. AFCI doesn't appear to just be standing around waiting for a buyout.
Norwest Venture Partners Expands Communications Portfolio with $9 Million Investment in Cerent Corporation
Tuesday, September 29, 1998 08:05 AM
PALO ALTO, Calif.--(BUSINESS WIRE)--Sept. 29, 1998--Norwest Venture Partners, the premier venture capital business partner for emerging growth IT companies, today announced a $9 million investment in Cerent Corporation, a leading telecommunications manufacturer. Norwest Venture Partners led the $12.7 million total round of financing, which included investments from Kleiner Perkins Caufield & Byers and Integral Capital Partners, as well as Advanced Fibre Communications, a Norwest portfolio company. In addition to the financing, Promod Haque, a general partner at Norwest Venture Partners, will join Cerent's board of directors.
Cerent, based in Petaluma, Calif., plans to use the funding to grow the company's infrastructure and expand marketing and distribution for its technology solution. Cerent's products allow service providers to cost-effectively build, and transition to, data-intensive fiber optic networks. Cerent is currently developing the Cerent 454(TM), a revolutionary access and transport platform that combines efficient, high-speed IP over SONET/SDH transport with ATM, frame relay and TDM access.
"Cerent has positioned itself, with a breakthrough product offering and a strong management team, to reap the benefits of the explosive growth in the public communications network," commented Haque. "As bandwidth requirements continue to grow, service providers will seek solutions that expand their available bandwidth and deliver advanced services while reducing their costs. Cerent's product solution improves the efficiency of a given amount of bandwidth while reducing the raw cost of transport."
Norwest Venture Partners will work closely with Cerent to build the company's infrastructure to achieve a leadership position in its market. Norwest Venture Partners will serve as a strategic business partner by not only supplying funding but also providing feedback and input into the company's key business decisions. Norwest Venture partners brings to Cerent a wealth of experience in all related market segments, including telecommunications, data communications, software and service provisioning. The firm has a strong network of portfolio companies that will provide Cerent instant access to potential strategic business partners and customers.
"Norwest Venture Partners has done an excellent job in growing start-ups into world-class, industry-leading organizations," noted Carl Russo, president and CEO of Cerent Corporation. "Promod Haque has an outstanding background in this market and his presence on Cerent's board of directors will provide an excellent resource to the company. We look forward to working with Norwest Venture Partners to establish Cerent as the market leader."
Cerent joins Norwest Venture Partners' communications portfolio which includes companies such as Advanced Fibre Communications (Nasdaq:AFCI), Corsair Communications (Nasdaq:CAIR), Brooks Fiber Properties (acquired by WorldCom, Nasdaq:WCOM), Verio (Nasdaq:VRIO), Xylan (Nasdaq:XYLN), Advanced Telecom Group, Extreme Networks, WNP Communications, and Xedia.
About Norwest Venture Partners
Norwest Venture Partners, founded in 1961, is the premier venture capital business partner for emerging growth IT companies. The firm actively manages $600 million in investments, and has raised more than $1 billion since inception. Norwest Venture Partners has a broad information technology investment focus, including software and the Internet, data communications, telecommunications, semiconductors and subscriber-based services. The firm prides itself on supporting companies beyond the call of duty with the reputation, financial resources, seasoned business experience and network of relationships required for success. Coopers & Lybrand ranked Norwest Venture Partners as the No. 1 most active software investor of 1997. The firm has invested in such market leaders as Documentum, PeopleSoft, Raptor Systems, Tivoli, Vantive and Verio. Additional information on Norwest Venture Partners is available via the Internet at norwestvc.com or by calling 650/321-8000 (Palo Alto) or 781/237-5870 (Boston).
CONTACT: The Horn Group
Ben Farrell or Peter Olson, 415/905-4000
bfarrell@horngroup.com
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