Safeguard Scientifics Acquires Interest in Extant, Inc.
- Under New 1999 Strategy
WAYNE, Pa., March 17 /PRNewswire/ -- Safeguard Scientifics, Inc. (NYSE: SFE - news), transforming today's emerging
companies into tomorrow's market leaders, has acquired a 20% fully diluted ownership interest in Extant, Inc. Based in
Columbus, OH, Extant offers wholesale extranet and virtual private network (VPN) services to Competitive Local Exchange
Carriers (CLECs) and Internet Service Providers (ISPs).
Extant, a market maker for CLECs and ISPs, provides a low cost transport and Internet protocol data network that
significantly lowers the information industry's barriers to entry. Extant brings together these telecommunication providers as a
community, offering a high quality, low-cost, responsive information network on which they can exchange traffic among
themselves at better than competitive rates with the appearance of a global footprint. During the first quarter Extant completed
several significant transactions.
-- Ascend Communications/Lucent Technologies completed an equity
investment and provided equipment financing in February 1999.
-- Signed an exclusive agreement with a leading extranet software company,
Hyperwave Information Management, Inc., in January 1999.
-- Signed a private line agreement with Qwest Communications in March
1999.
Pete Musser, Safeguard's chairman and CEO, commented, ''Extant, one of Safeguard's first investments of 1999, is consistent
with our plan to focus on eCommerce, enterprise applications, and network infrastructure businesses, all of which are expected
to benefit from growing use of the Internet as a fundamental business tool. Extant's role in providing the products and services
that facilitate eCommerce fits perfectly with our focus on network infrastructure opportunities.''
Larry McLernon, founder and CEO of Extant, commented, ''We believe Safeguard is the ideal strategic partner because of its
successful track record. With Safeguard as a partner, we are now prepared to accelerate our growth towards a national
network.''
Jerry Johnson, Safeguard's senior vice president, operations, commented, ''With interests in Pac-West and now Extant, we
have successfully built the foundation for accelerating our network infrastructure strategy. At a time when there is a limited
number of communications executives, Larry McLernon, who founded and built LiTel Telecommunications/LCI International
into a $260 million company, brings proven entrepreneurial talent and industry relationships on which Extant can strengthen its
position as a leader in the network infrastructure market.''
About Safeguard
Safeguard Scientifics, Inc. (www.safeguard.com) develops and operates rapidly growing information technology companies
that together form a community of shared resources with a strategic emphasis in eCommerce, enterprise applications, and
network infrastructure, all of which are expected to benefit from the growing use of the Internet as a fundamental business tool.
A long-term partner, Safeguard works closely with its partnership companies providing numerous operational and
developmental services to build value in preparation for public rights offerings and beyond. The Company's partnership
companies include privately-held companies and public companies. Safeguard also assists in managing and working with
several venture capital funds.
SOURCE: Safeguard Scientifics, Inc.
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