GAITHERSBURG, MD., July 17, 2007 -- BroadSoft, Inc., a leading provider of VoIP application software, today announced that it has accepted $10 million in mezzanine equity financing from Meritech Capital Partners. BroadSoft will use the funding for corporate purposes, including financing the continued growth of its operations and its expansion of market share in fast-growing regions, including Latin America, Eastern Europe and Southeast Asia.
“In the last two years, we have doubled our staff and expanded our European and APAC operations to ensure the success of our customers,” said Michael Tessler, president and CEO of BroadSoft. “We are well-positioned and leading the way in the network migration trend currently playing out as carriers increasingly begin to switch from traditional telephony systems to IP networks.”
Meritech Capital Partners, a premier late-stage venture capital firm and a new BroadSoft investor, was the sole investor in the $10 million Series D round. Meritech targets late-stage companies with proven and differentiated technology, rapidly growing revenue and seasoned management teams.
"BroadSoft fits our investment style, and is strong across the board--from leadership to execution and product development,” said Mike Gordon, managing director, Meritech Capital Partners. "BroadSoft continues to grow its revenue, expand into and dominate new markets and win service provider customers away from its competitors with its innovative BroadWorks® platform. We are excited about investing in BroadSoft’s future as a leader in VoIP applications.”
“This funding from Meritech will fuel BroadSoft’s continued expansion into fast-growing global markets and ensure we maintain the highest level of support services for our increasing customer base,” Tessler added. “We count more than 40 incumbent carriers as customers worldwide, and are also winning smaller, competitive providers that aggressively roll out new BroadWorks-based services, such as our fixed-mobile convergence applications.”
The funding comes on the heels of major announcements by BroadSoft or recognition of the company and its solutions in the first half of 2007, including:
- Recognition as the VoIP application market leader by researcher IDC
- Receiving the Northern Virginia Technology Council’s “Hottest Management Team” honor for its experienced executive leadership
- Earning the Communications Solutions Product of the Year award for the BroadWorks Business Trunking application
- Naming Fortune 500 veteran executives Tom Kelly and Douglas Maine to the BroadSoft Board of Directors. Kelly retired last year from Sprint Nextel, where he served as chief strategy officer, and Maine is the former chief financial officer for IBM and MCI
- Opening a new office in Beijing to support service provider customers in China, and naming Jonathan Reid as vice president of Asia Pacific
- Opening a new BroadSoft APAC Operations Centre to provide in-region support to customers and expand its follow-the-sun approach to global customer support
- Announcing that U.S. cable operator Cox Business Services has chosen the BroadWorks platform to deliver hosted voice services to small and medium businesses
- Announcing that KPN, the incumbent telecom in the Netherlands, has chosen the BroadWorks platform to migrate its network from traditional landlines to an IP network
- Other new customer announcements including Siminn, the incumbent in Iceland, and Telekom Slovenije, Slovenia’s incumbent
This funding round brings BroadSoft’s total venture capital investments to date to approximately $72.5 million.
About The BroadWorks Platform
BroadSoft's IMS-compliant BroadWorks® platform provides a comprehensive range of VoIP applications, including hosted PBX, IP Centrex, mobile PBX, business trunking and residential broadband services fully integrated into a single VoIP application platform. BroadWorks is capable of providing these applications with the reliability, redundancy, scalability and regulatory capabilities required to deliver carrier-class service.
About Meritech Capital Partners
Meritech Capital is a leading provider of late stage venture capital to information technology companies. With over $2.2 billion under management, Meritech seeks to lead investments in the portfolio companies of leading early stage venture capital firms. Meritech pursues traditional growth companies as well as co-investments in corporate buy-outs and spin-offs. Its investments are typically in companies with proven and differentiated technology, rapidly growing revenue, and seasoned management teams. As a late stage investor, Meritech leverages a broad network of individuals and companies to create strategic and business opportunities for its investments. In addition, Meritech provides guidance on late-stage issues including management incentive plans, IPO market timing and positioning, adviser selection, and post-IPO ownership transition. Meritech is located in Palo Alto, CA. www.meritechcapital.com.
BroadSoft provides VoIP application software that enables the delivery
of hosted telephony and multimedia services. Its flagship BroadWorks®
technology empowers wireless, wireline and cable carriers to deliver
next-generation voice and multimedia applications and advanced features
that enable them to increase revenue, enhance competitive
differentiation and elevate customer satisfaction. BroadSoft’s family
of carrier-class software products delivers the scale, open
architecture and reliability that the world’s leading
telecommunications companies demand to serve mission-critical
enterprise and residential broadband customers. BroadSoft provides VoIP
applications to 7 of the top 10 and 13 of the top 25 largest carriers
worldwide, as measured by recent annual revenue, including Korea
Telecom, Singtel, Sprint, Telefonica de Espana, Telstra, T-Systems, and
Verizon. For additional information, go to www.broadsoft.com