CenterBeam Balances $115M Mezzanine Round

Scoring $115 million in a Series C deal that will be its last before it hits the public markets, CenterBeam Inc. added both traditional and strategic names to its list of investors to fuel a national and international expansion.

Apax Partners? U.S affiliate, Patricof & Co. led the deal and Particof?s Menlo Park, Calif.-based Venture Partner Ron Weissman, took a seat on the company?s board. New investors also included Charter Growth Capital, Comdisco, EDS Ventures, Equity Office Properties Trust and Merrill Lynch & Co.

They were joined by return investors Accel Partners, CrossPoint Venture Partners, Dell Ventures, Intel Capital, Impact Venture Partners, New Enterprise Associates and Tangent Fund Management. Accel, CrossPoint and NEA already hold board seats.

The company closed on its first round of private equity financing in April of last year. Accel, Crosspoint, Microsoft Corp. and NEA came into the deal with $20 million. Later that year, in December, the company closed a $35 million Series B led by Dell and Intel.

The most recent round of funding will extend the company?s run to profitability, said Sheldon Laube, chairman and chief executive of CenterBeam. It will also be the company?s last foray into the private markets before it turns to the public markets for capital. The company expects to reach profitability by 2002.

CenterBeam, based in Santa Clara, Calif., provides managed IT infrastructure solutions to small- and medium-sized businesses. Based on a fixed monthly fee, the company delivers a package that includes wireless LAN solutions, computers and servers, printers, Internet connectivity and data back-up services, along with customer support and upgrades.

Commercial real estate owner, and venture investor, Equity Office Properties is the latest to come to the table with strategic offerings ? marketing CenterBeam solutions to its tenants. The company also offers customers Dell PCs and servers and Microsoft software packages.

The financing will drive the company?s continued roll-out in domestic and international markets. Currently, the company has offices in 20 U.S. cities and plans to hit Europe in the first half of 2001.