Contact Information: Contacts: Richard M. Williams Connect2 Communications + 1 (919) 554 3532 rmwilliams@connect2comm.com Clive Partridge Data Connection Phone: +44 (20) 8366 1177 cp@dataconnection.com
Francisco Partners and Sequoia Capital Make Significant Investment in Data Connection and MetaSwitch
Sets the Stage for Continued Growth for Telecommunications Software and Solutions Company
| Source: Data Connection and MetaSwitch
SAN FRANCISCO, CA and LONDON--(Marketwire - January 14, 2008) - Data Connection Limited (DCL)
today announced that leading private equity firm Francisco Partners has led
a significant investment round into the company, including its MetaSwitch
division. One of the world's largest technology-focused private equity
funds with approximately $5 billion in capital under management, Francisco
Partners has teamed up with its strategic partner, Sequoia Capital, one of
Silicon Valley's most prominent venture capital firms, to provide the
financial resources and expertise to help take Data Connection and
MetaSwitch to the next level of growth.
"Having recently passed $100 million in annual revenue, it became clear to
us that our current growth trajectory would be significantly enhanced by
tapping into the experience and resources that major players such as
Francisco Partners and Sequoia Capital can bring," said Ian Ferguson,
Chairman and Founder of Data Connection and MetaSwitch.
The entire existing management team, led by Ian Ferguson, stays in place.
In particular, Phil McConnell continues to lead Data Connection's network
protocols business, while Graeme MacArthur and John Lazar continue to lead
the MetaSwitch division.
"What attracted us to Data Connection and MetaSwitch was their exceptional
track record of profitability, combined with the exciting market
opportunities for their world-class technology," said Ben Ball, a
co-founder of Francisco Partners based in San Francisco.
Deep Shah, a Principal at Francisco Partners based in London, added,
"During our due diligence process, we came to realize that the company's
real source of strength was its people and culture -- not just the senior
management team, but an incredible depth of talent and commitment
throughout the organization. Our goal is to help build on that proven
successful formula and help the company continue, as a cohesive unit, to
deliver superior solutions to its growing customer base."
The Data Connection Employee Benefit Trust (EBT) -- previously the sole
shareholder in the business -- retains a major stake in the company. This
ownership structure ensures that all current and future employees will
continue to share in the success of the company, and retains the core
culture of rewarding people equitably, according to their contribution.
Speaking to the benefits of the new structure, Mr. Ferguson commented,
"This transaction is good for our employees, who benefit via the EBT, and
for our customers, who will benefit from us becoming an even stronger
company through the injection of expertise and resources from Francisco
Partners and Sequoia Capital."
Morgan Stanley acted as financial advisers and Slaughter & May as legal
advisers to Francisco Partners and Sequoia Capital. Wachovia Securities
acted as financial advisers and Linklaters as legal advisers to Data
Connection.
About Data Connection
Data Connection Limited (DCL) is the leading independent developer and
supplier of IMS, SBC, SIP, Megaco/H.248, Diameter, MGCP, Unicast and
Multicast IP Routing, Packet and Optical MPLS, ATM, and SNA portable
products, as well as complete telecom solutions via its MetaSwitch
division. Data Connection customers include the world's largest software
and hardware vendors, including Alcatel-Lucent, Cisco, IBM, and Microsoft.
With over 400 employees, Data Connection is headquartered in London, UK
with US offices in Alameda, CA, Boxborough, MA, Dallas, TX and Reston, VA.
For more information, please see www.dataconnection.com.
About MetaSwitch
MetaSwitch, a division of Data Connection, is an industry-leading vendor of
switching and applications solutions for both packet and circuit-switched
networks. Its MetaSphere service
delivery platform and applications suite enables a broad set of hosted
IP communications services, while its core session control and
media/signaling gateway products support a full range of Class 4/5 softswitch capabilities. Customers
include many of the world's leading operators of wireline, wireless and
cable networks, with deployments that scale to millions of subscribers. For
more information, please visit www.metaswitch.com.
About Francisco Partners
With nearly $5.0 billion of committed capital and offices in San Francisco
and London, Francisco Partners is one of the world's largest
technology-focused private equity funds. The firm was founded to pursue
structured investments in technology companies undergoing strategic,
technological, and operational inflection points. Francisco Partners
targets majority and minority investments in private companies, public
companies, and divisions of public companies, with transaction values
ranging from $30 million to $2.0 billion. The principals of Francisco
Partners have a proven track record, having invested in excess of $3.0
billion of equity capital in over 50 technology companies. For additional
information, visit www.franciscopartners.com.
About Sequoia Capital
Since 1972, Sequoia Capital has provided early stage and growth stage
venture capital for very smart founders and executives who have turned
great ideas into sustainable companies of enduring value. As the
"Entrepreneurs Behind the Entrepreneurs," Sequoia Capital's Partners have
worked with accomplished innovators and operators who built great
franchises such as Apple Computer, Cisco Systems, Flextronics, Google,
Informix, Linear Technology, LSI Logic, Microchip, NetScaler, NetScreen,
Network Appliance, nVidia, Oracle, PayPal, Redback Networks, Yahoo! and
YouTube. To learn more about Sequoia Capital visit www.sequoiacap.com.
Data Connection and MetaSwitch are trademarks of Data Connection Limited
and Data Connection Corporation. Brands and products referenced herein are
the trademarks or registered trademarks of their respective holders.
Copyright © 2008 Data Connection Limited