DSL.net Completes Financing

The New Haven, Conn. ISP receives the final installment of a previously-announced $15 million investment. The company may well be considering further acquisitions.

by boston.internet.com Staff [June 5, 2002]

DSL.net, a New Haven, Conn., provider of Internet access for small- and medium-sized businesses, has closed the final installment of a previously announced $15 million investment transaction.

The $8.5 million equity infusion will bring DSL.net an additional $5 million in cash, with the remaining $3.5 million used to pay short-term notes. The new backing could be used for more acquisitions.

The money comes from a consortium of investors led by Columbia Capital, and including Charles River Ventures, Hunt Private Equity Group, and National Investors Group. It is in addition to a $20 million financing package previously secured from VantagePoint Venture Partners.

David F. Struwas, chairman and CEO of DSL.net, said, "Completing this latest round of financing provides us with the capital to pursue our opportunistic acquisition strategy and seize upon the significant growth opportunities that exist in today's marketplace."

In addition to high-speed access, DSL.net offers Web hosting, enhanced e-mail, on-line data backup and recovery services, firewalls, and nationwide dial-up services.

Shares of DSLN were off 0.03, or 5 percent, at midday, to 0.6. In the last 52 weeks, the issue has ranged from 0.14 to 1.49.

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