Storm raises $35m in second round roll-out

Investee Company – Storm Telecommunications Limited (UK)

Investee Company Business Type – Optical network operator

Type of Financing – Expansion

Equity Providers – Soros Private Equity Partners, Merrill Lynch Ventures, other undisclosed investors

Equity Leader (Individual) – Ramez Sousou, Soros Private Equity Partners

Debt Providers – N/A

Debt Type – N/A

Debt Leader (Individual) – N/A

Equity Amount – $35 million

Total Deal Value – $35 million

Other Advisors – N/A

Comments – Storm Telecommunications has recieved $35 million in a second round of funding from affiliates of Soros Private Equity Partners, Merrill Lynch Ventures and other undisclosed investors. The investment will fund the provision of new Ethernet and IP services for businesses designed to complement its existing pan-European optically switched network.

The company provides voice, bandwidth and IP services and had revenues of £52 million in 2000. Currently Storm’s intelligent mesh network is operational in the UK, France, Germany, Norway, Sweden, Denmark and the Netherlands, imminently reaching the US, Austria and Switzerland.

In February 2000 Storm’s management successfully navigated an MBO from founders Telenor, IXC Communications and Clarion Resources, in a deal backed by investment affiliates of Soros. Further backing came from affiliates of Merrill Lynch Ventures in May 2000.

Ramez Sousou, managing partner of Soros Private Equity Partners, Europe, said: “Storm has a very strong proposition in the currently unstable telecoms market”.

Led by Soros Private Equity Partners, this latest round of funding brings the total financing commitments in Storm to $400 million.