NEC Eluminant Gets $26M

Itochu Corp., the lead investor in the Series A funding, will invest $18 million in the maker of fiber-based broadband access products

October 19, 2001

2 Min Read

CHANTILLY, Va. -- NEC Eluminant Technologies Inc. (eLUMINANT(TM)) today announced that it has finalized agreements for $26 million in funding to support the company's strategy to achieve high growth and become a market leader in fiber-based broadband access products and solutions. ITOCHU Corporation (TSE: 8001), the lead investor in the Series A funding, will invest $18 million in eLUMINANT; NEC USA Inc. and other NEC Group companies will provide an additional $8 million in funding. A subsidiary of NEC USA and an affiliate of high technology giant NEC Corporation, eLUMINANT was launched in 1998 to develop a new generation of optical networking access equipment that will enable carriers to provide high bandwidth data, voice and video services to subscribers. As an independent company, eLUMINANT has been organized to pursue substantial growth through strategic and financial partnerships, mergers and acquisitions, and global marketing initiatives. eLUMINANT already serves many of the major U.S. carriers, and will partner with other NEC organizations to compete and serve customers on a global level. David Montanaro, chairman and chief executive officer of eLUMINANT, explained that this successful round of funding for eLUMINANT, the first to include an outside investor, reflects the strength of the company's position within the industry. "In today's challenging economic climate, the telecommunications industry has experienced a decline in the growth of certain segments such as backbone networks. As a result, investments in these areas have similarly declined," Mr. Montanaro said. "In contrast," he added, "the increased demand for high-speed data communications is fueling the worldwide market for high-speed broadband access networks needed to solve the first-mile bottleneck. This level of demand has an obvious appeal to investors. eLUMINANT's ability to leverage NEC's history of optical research and development, coupled with our established position as a major supplier of fiber-based last-mile access systems to the world's leading carriers results in even greater investor confidence," Mr. Montanaro said. NEC Eluminant Technologies Inc.

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