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San Francisco, CA, and London, UK: 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.
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Copyright © 2000 - 2008 Data Connection.
MetaSwitch is a registered trademark of Data Connection.
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