A10 Networks Brings in $80 Million Equity Investment
Application networking vendor brings in new funds to fuel future growth.
A10 Networks is set to benefit from a new round of investment. The company announced today that it has secured an $80 million equity investment from equity firm Summit Partners.
A10 also secured a $35 million revolving credit facility by way of Bank of America Merrill Lynch, J.P. Morgan and RBC Capital Markets.
Greg Straughn, A10's CFO, told Enterprise Networking Planet that his company had previously raised $40 million in equity investment, bringing the total equity investment in A10 Networks to $120 million.
"So, we could bring a total of $155M of total outside capital into the business if we needed to, but for comparative purposes with most Valley firms, we are differentiating the equity ($120M) from the credit line ($35M)," Straughn said.
A10 Networks was founded in 2004 and is currently not a public company. As such, the company does not need to publicly report on its financial position and whether it is profitable. In response to a question from Enterprise Networking Planet about whether A10 is, in fact, currently profitable, Straughn remarked that A10 is not commenting on financials at this time.
"With this funding, we are investing in the business and making certain that we have enough funds to respond to key market opportunities as they arise," Straughn said.
A10 launched its Thunder portfolio of Unified Application Service Gateways (UASG) in July. A UASG is an enhanced form of what the industry typically refers to as an Application Delivery Controller (ADC). The A10 Thunder includes application awareness capabilities and is powered by high-end Cavium Nitrox III ASICs.
Moving forward, Straughn said that A10 is expanding the business based on its continued growth. The company is investing in its own overall infrastructure, as well as its local and global partners.
"On the R&D side, we are expanding the teams for new product development and ongoing innovation," Straughn commented. "On the sales side, we are expanding the teams by going broader and deeper within our areas of coverage."
Sean Michael Kerner is a senior editor at Enterprise Networking Planet and InternetNews.com. Follow him on Twitter @TechJournalist