|
|
A Global Private Investment Firm Leveraging Experience, Knowledge & Relationships
Video Network, Inc. Closes $66 Million Financing Round,Announces Plans to Change Company Name to Pathfire
11/14/2000
Key Strategic Investors Include Enron Broadband Services, Reuters and PanAmSat
New
Pathfire Name Reflects Company’s Pioneering Applications for
Distribution and Management of Digital Media Across Numerous Industries
ATLANTA, GEORGIA, and NEW YORK, NEW YORK, November 14, 2000
Video Networks Inc. (VNI), a leading business-to-business provider of
digitized video and related e-commerce applications for the media
industry, announced today that it has closed on a $66 million round of
private financing led by Quadrangle Group LLC, a private equity firm
specializing in the media and communications industries.
Quadrangle's $20 million investment was the cornerstone of a round of
financing that also included several key strategic and financial
investors, such as Enron Broadband Services, a subsidiary of Enron
Corp. (NYSE: ENE); Halpern Denny & Company; PanAmSat (NASDAQ:
SPOT); Reuters; Riggs Capital Partners; and Sand Hill Capital. VNI said
that it expects to announce business partnerships with several of its
new strategic investors in the near future.
This round of financing included participation by existing high-quality
VNI investors, such as Alliance Technology Ventures, AT&T Ventures,
Bank of America Capital Investors, Institutional Venture Partners
(IVP), Kinetic Ventures, Monarch Capital Partners, Noro-Moseley
Partners, UPS Strategic Enterprise Fund and U.S. Venture Partners.
Robertson Stephens functioned as VNI's agent for this significant round
of financing.
Michael J. Eckert, president and CEO of VNI, said, "We are pleased and
gratified that such a large number of blue-chip companies and firms
have joined our existing investors in supporting VNI's vision and
direction, and we are quite enthusiastic about the significant
strategic value they bring. Our ability to secure a lead investor of
Quadrangle's stature represents a strong vote of confidence in our
employees, and of course in our groundbreaking technology. Through its
deep relationships and high regard within the media and communication
industries, Quadrangle will be a valuable partner as we continue to
build this company."
Joshua L. Steiner, managing principal of Quadrangle, said, "We believe
that VNI offers its customers superior service and significant
cost-savings. The fact that leading media companies like NBC and
Charter Communications rely on VNI for mission-critical solutions gives
us great confidence in the company's prospects."
Steven Rattner, managing principal of Quadrangle, said, "Quadrangle's
strategy is to focus on high-quality investments in the media and
communications industries, and to invest in companies where we can make
a difference. We are very excited about this company and its management
team, and we look forward to helping VNI increase its product offerings
and expand its customer base."
Quadrangle will receive one seat on the VNI Board of Directors and has
the right to nominate a second board member, subject to the approval of
the other shareholders in this round of financing.
VNI is a leading business-to-business provider of digital media content
distribution and management services to the broadcasting and cable
industries, with emerging operations in the areas of radio, digital
cinema, syndication and streaming content on the Internet. VNI provides
a distribution platform and software applications for the delivery and
management of digitized video content and has developed unique
e-commerce solutions that improve the efficiency of related billing and
processing transactions. VNI's customers include major broadcast
networks, cable companies, advertising agencies and other leading media
companies.
Company to Change Name to "Pathfire," Reflecting Its Continuing Evolution
VNI's decision to change its name to Pathfire reflects a new stage of
its development and its unique ability to distribute and manage digital
media across numerous segments of the media industry.
The name is meant to evoke the speed and efficiency the company's
leading-edge software applications and related networking capabilities
bring to the management and exchange of digitized media assets in the
cable, broadcast, media and entertainment industries. The company will
officially adopt the Pathfire name and will launch an extensive
rebranding campaign during the first quarter of 2001.
"We wanted a name that evoked the things we do as a company as well as
the unique and dynamic way in which we do them," Eckert said. "Pathfire
speaks to our ability to distribute content and also to our ability to
surround that content with applications and services that make it more
valuable."
Quadrangle Group LLC is an investment firm specializing in the media
and communications industries. It was founded in March 2000 by four
Managing Directors of Lazard Frères & Co. LLC who have more than 50
years of combined experience in private equity and in media and
communications. The firm's advisory board and other investors include
many prominent executives of leading media and communications
companies.
Media Contact:
Video Networks Inc.
Laurie Sillay Lahr
Director, Marketing Communications
770.619.0801, ext. 1240
lsillaylahr@vninet.com
For VNI:
Robinson Lerer & Montgomery
Lisa Wolford
212.484.7058
lwolford@rlmnet.com
For Quadrangle:
Abernathy MacGregor Group
Adam Miller
212.371.5999
alm@abmac.com
Back To Previous Page
|
|