Accedian Networks, a provider of solutions for carrier ethernet and IP networks, has secured USD19.5m in a round of financing led by Summit Partners, a growth equity firm with offices in Boston, Palo Alto and London.
Rho Ventures and Skypoint Capital, existing investors in Accedian, also participated in the round.
The funds raised will primarily be used to accelerate Accedian’s commercial efforts and support its market share expansion.
“The rapid increase of mobile device usage and network traffic has left carriers struggling to meet consumer demand and service level agreements, with the backhaul function representing a notable bottleneck on most networks,” says Tom Jennings (pictured), a managing director at Summit Partners who has joined the company’s board of directors. “Accedian is well-positioned as the market leader with state-of-the-art network interface devices that provide the highest performance optimisation and assurance functionality.”
Since inception, Accedian has sold over 55,000 platforms to over 150 service providers and enterprise customers worldwide. To continue supporting the expansion of its commercial operations, Accedian is investing to grow its global sales force, as well as its product development, marketing and administrative support organisations.
Infonetics Research forecasts that carrier ethernet equipment revenues will increase from the USD21.6bn globally invested by service providers in 2009, to over USD32bn in 2014.
“Today, carrier ethernet business service delivery, wholesale access and Ethernet wireless backhaul networks require automated Ethernet service creation and high-performance service assurance solutions,” says Patrick Ostiguy, co-founder, president and chief executive of Accedian Networks. “With accelerating market demand, we believe Accedian is well-positioned to capitalise on this tremendous opportunity with real-world products and solutions that are in constant evolution. The strategic investment made by Summit Partners is a resounding validation of our vision, technological expertise, and capability to service this market.”
