Sanrise Completes $190M Series B Deal

In one of the year?s largest venture capital deals to date, storage area network provider Sanrise Group Inc. recently finished up the second tranche of a $190 million Series B debt and equity financing.

The company closed the first part of the deal in February, with $148 million worth of commitments from Comdisco Ventures, Crosspoint Venture Partners, Exodus Communications Inc., GATX Ventures, Hitachi Ltd., Hitachi Data Systems, Morgan Stanley Dean Witter, Morgan Keegan, Texas Pacific Group, Veritas Software Corp. and Wilson Sonsini Goodrich & Rosati.

A bevy of new backers put in the remaining $42 million in part two. They included ACON Venture Partners, Global Innovation Partners, Greenbridge Partners LLC, The Greenspun Corp., Lighthouse Capital Partners and Oasis Ventures.

Representatives from Global Innovation Partners and Greenbridge Partners also took seats on the company?s board as part of the deal.

The round?s equity portion was worth about $115 million, with credit and lease lines making up the $75 million difference.

After completing this round, Sanrise should be sufficiently funded to carry it to profitability by the end of Q2 2002, said Graham Wilson, the company?s senior director of marketing. As such, it has no plans to draw another bucket from the private equity well before considering a Wall Street debut, perhaps sometime in the next year, he added.

A majority of the proceeds from the company?s latest capital infusion will be used to roll out its newest product offering ? an enterprise storage capability that will be located on a company?s premises but managed remotely by Sanrise.

Contact Robyn Kurdek: Robyn.Kurdek@tfn.com