A10 Networks raises $115mn in new capital

DELHI/BANGALORE, INDIA: A10 Networks, Inc., a technology leader in Application Networking, has announced it has secured $115 million in capital through an equity financing and a committed revolving credit facility.

Summit Partners, a leading global growth equity firm, led the round with an $80 million equity investment. An additional $35 million revolving credit facility was obtained through Bank of America Merrill Lynch, J.P. Morgan and RBC Capital Markets.

Says Lee Chen, founder and CEO for A10 Networks ""We are proud of the investment and the underlying vote of confidence from several of North America's largest and most prestigious financial institutions. With this investment, A10 will continue to extend its technology leadership and expand its market penetration with innovative solutions to help customers accelerate, optimize and secure websites and applications."

"A10 has established a leadership position in next-generation data center and cloud infrastructure technology. Its products improve the performance and scalability of customers' networks with disruptive performance and innovation combined with best-in-class customer support," said Peter Chung, Managing Director at Summit Partners who has joined the A10 Board of Directors. "We look forward to serving as the company's partner during this next phase of its growth."

A10 continues to extend its technology leadership with innovative solutions that disrupt the Application Delivery Controller (ADC) market. The A10 Thunder Series, unveiled in May, are next-generation Application Delivery Controllers that consolidate numerous premium feature modules and deliver the highest performance, most compact form factors to increase data center scalability and efficiency. With the success of the Thunder Series and other products, A10's most recent quarter produced record revenues.

"A10 has an enormous market opportunity with the rapid growth of cloud applications and online devices," said Greg Straughn, CFO of A10 Networks. "Our strong execution and rapid growth have enabled A10 Networks to raise a considerable amount of capital from leading financial institutions. With the additional capital, we will continue to invest in R&D, Customer Support, Sales and Marketing, as well as continue to grow our global workforce well beyond our current 600 employees, key elements for extending our history of strong revenue growth."

The revolving credit line was arranged by three co-book runners: Bank of America Merrill Lynch, J. P. Morgan and RBC Capital Markets, which also acted as the Administrative Agent.