CDNetworks Raises $96.5M
SEOUL, South Korea -- CDNetworks (KOSDAQ:073710), a top three global, full service content delivery network (CDN) and the #1 CDN provider in Asia, today announced a strategic private investment of US$ 96.5 million led by Oak Investment Partners, with co-investment from Shinhan Private Equity and Goldman Sachs International. The company will use the new funding to fuel its rapid global expansion in response to the growing demand for its full range of CDN services – content acceleration, digital media downloads, and video streaming – across international markets.
“As experienced investors in the global CDN sector, Oak is delighted at this opportunity to partner with CDNetworks to fulfill its growth potential not only across the Pan-Asian markets but even beyond,” said Ifty Ahmed, General Partner of Oak Investment Partners. “We are extremely impressed with the company’s technology and service leadership, and their strong management team with a proven ability to execute their vision of growth while remaining focused on profitability and return on invested capital.”
The company will issue an additional 5,285,034 shares of common stock at the price of 17,000 Korean Won. In the transaction, Oak, Shinhan, and Goldman Sachs International will receive 2,348,904 shares; 1,761,678 shares; and 1,174,452 shares respectively, and all of them will enter into a one-year lock-up agreement. As part of this transaction, a representative each from Oak and Shinhan will be joining the board of directors of the company.
“This investment is a testament to our outstanding performance and reliability as a global leader in the CDN market,” said Samuel Ko, Founder and CEO of CDNetworks. “The additional funding will help CDNetworks fortify our Asian market leadership and our service offerings, while accelerating our entry into the United States and other new markets. We will continue to be disciplined and strategic in our growth and will remain committed to creating long-term value for our shareholders and customers alike.”
CDNetworks Co. Ltd.