CDNetworks Secures $96.5 Million Investment
Seoul, Korea – December 20, 2007 – CDNetworks (KOSDAQ: 073710), a top three global, full service content delivery network (CDN) and the #1 CDN provider in Asia, today announced a strategic private investment of US$ 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.”
About Oak Investment Partners
Established in 1978, Oak Investment Partners is a venture capital firm with a strong track record as a multi-stage investor. Their primary investment focus is on high growth opportunities in communications, information technology, consumer internet, new media, financial services information technology, semiconductors, healthcare services, and retail. Oak concentrates on building long-term relationships with experienced management teams to develop successful companies that deliver consistent performance over time. These include 2Wire, Aquantive (acquired by Microsoft), Athenahealth, Compaq, Fastclick (acquired by ValueClick), Genzyme, Gmarket, Inktomi (acquired by Yahoo!), Parametric Technology Corporation, Polycom, Seagate Technologies, SMIC, Sybase, Synaptics, Synopsys, TeleAtlas, Virata, Wireless Facilities (WFII), etc. For more information, please visit www.oakinv.com.
About Shinhan Private Equity
Established in 2004, Shinhan Private Equity is the first local private equity company in Korea and a wholly owned subsidiary of Shinhan Financial Group. The company has established and is managing KRW 300 billion Shinhan-NPS (National Pension Service) Private Equity Fund I focusing on buy-out and growth capital investment. Shinhan Financial Group (SFG) is Korea’s first and largest financial holding company and listed on the NYSE and the Korea Stock Exchange, serving more than 10 million active customers with 15,000 employees and 1,000 network branches worldwide.
About Goldman Sachs
Goldman Sachs is a global investment banking, securities and investment management firm. It provides a wide range of services to a substantial and diversified client base that includes corporations, institutional investors, governments, non-profit organisations and high-net-worth individuals. Its headquarters is in New York and it maintains significant offices in London, Frankfurt, Tokyo, Hong Kong and other financial centers around the world.
CDNetworks, a top three global, full service content delivery network (CDN) service provider and the #1 CDN in Asia, delivers fast, reliable, and cost-effective solutions to transport large digital media files over the Internet. CDNetworks delivers content for world-leading online gaming publishers, broadcasters, social networking websites, and e-Learning providers. CDNetworks was founded in 2000 in Seoul, Korea and is publicly traded on Korea’s KOSDAQ exchange. For more information please visit: www.cdnetworks.com.