One Equity Partners leads $35 million funding round for NexTone
New Funding Accelerates IP Session Management Leader’s Next Phase of Growth
New York, New York – November 7, 2005 – One Equity Partners (OEP), a private equity affiliate of JPMorgan Chase & Co., today announced it led a $35 million Series D funding in NexTone Communications®, the leader in distributed and intelligent session management solutions for voice over IP (VoIP) and other real-time IP services. Existing investors BCE Capital, Core Capital, Mid-Atlantic Venture Funds, and Safeguard Scientifics, Inc. (NYSE: SFE), also participated in the round.
NexTone customers now carry over 50 percent of all long-distance VoIP traffic. More than 370 carrier and enterprise customers in 38 countries depend on NexTone’s end-to-end session management solutions to manage all aspects of their real-time IP services, including service connectivity, guaranteed quality of service, traffic management, and policy enforcement. These capabilities are not only essential for delivering VoIP, but also for the emerging multi-media services based on the IP Multimedia subsystem (IMS) architecture. The new round of funding will be used to add new functionality to the product suite and further strengthen the sales and marketing efforts that have led to recent wins in the enterprise and tier-one service provider market.
“The ongoing proliferation of VoIP services is creating opportunities for IP network providers to continue to displace traditional phone networks,” said Ethan Ayer, a Partner at One Equity Partners. “In addition, the promise of converged IP service networks is creating additional demand for session management, particularly as carriers compete on quality of service and new applications. With this funding, NexTone is extremely well positioned to provide superior solutions to carriers and enterprises as they evolve toward next-generation, multi-service IP networks.”
“This new round of financing is a strong validation of NexTone’s achievements to date and it strengthens our continued ability to lead the session management market,” said Malik Khan, Chairman and CEO of NexTone. “NexTone’s innovative solution is flexible, scaleable, and provides the networking intelligence needed for converged IP environments.”
NexTone’s revenues have doubled in the last twelve months, fueled by volume increases from existing customers as well as over 100 new customers. The company recently opened new sales offices in Asia, Europe, and Latin America as part of its global expansion.
About NexTone Communications:
NexTone Communications develops carrier-grade products for delivering scalable control of real-time IP services, such as voice over IP (VoIP). NexTone’s solutions enable carriers, service providers, and enterprises to securely, simply, and cost-effectively interconnect networks for end-to-end control and management of IP traffic. NexTone's real-time IP technology is used by more than 370 service providers and enterprises worldwide to dramatically reduce capital expenditures and deliver ongoing operational efficiencies, such as reduced interconnect "turn-up" time and simplified network operations. The company is headquartered in Gaithersburg, Maryland, USA, with domestic and international sales offices worldwide. For more information, visit www.nextone.com.
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