Monday, September 11, 2006

NexTone Raises $25 Million

NexTone Communications raised a $25 million investment from Columbia Partners Private Capital, the private investment group of Columbia Partners L.L.C., a Washington, D.C.-based investment management group. The new funding brings the company's total private funding to date to $92.5 million. Earlier venture investors in NexTone include One Equity Partners (OEP), BCE Capital, Core Capital, Mid-Atlantic Venture Funds, and Safeguard Scientifics.

Nextone said it has achieved record bookings in 2006 for its IntelliConnect System, a suite of intelligent session management and interconnect products designed for VoIP and IP Multimedia Subsystem (IMS) service providers. NexTone claims over 500 customers and estimates that its customers currently carry over 50% of the world's international VoIP traffic.

"NexTone is currently experiencing record growth because the market opportunities in VoIP and IMS are so vast. This investment from Columbia Partners allows us to accelerate our business plan by rapidly scaling NexTone's strategic initiatives and expanding our product line and support organizations to match the diverse requirements of our growing customer base," said Malik Khan, chairman and CEO, NexTone Communications.