NTT Com Agrees to Acquire Norwest Venture Partners' Portfolio Company Virtela
$525 Million Acquisition of Global Cloud Networking Leader Is the
Eighth NVP Liquidity Event This Year; Brings Combined Transaction
Value to More Than $8 Billion
PALO ALTO, CA -- (Marketwired) -- 10/28/13 -- Norwest Venture
Partners (NVP) today announced that NTT Communications Corporation
(NTT Com), ICT solutions and international communications business
within NTT (NYSE: NTT), and Virtela Technology Services Incorporated
(Virtela), a leading global managed and cloud network services
company, have entered into a definitive agreement via NTT Com and
Virtela's shareholders. This is pursuant to which NTT Com has agreed
to wholly acquire Virtela for a total transaction price of
approximately $525 million (USD) in cash.
NVP is the founding investor and largest shareholder in Virtela. The
company was founded and incubated by Vab Goel, general partner at
NVP, who also served as founding CEO and Chairman, and currently
serves as a board member. Promod Haque, senior managing partner at
NVP, is a founding investor in Virtela, having provided the initial
funding to the company. Haque currently serves on the board of
directors as Chairman of Virtela.
"At NVP, we view the networking industry as a foundational pillar of
technology innovation and continue to make game changing investments
to drive this market forward," said Haque. "Virtela is at the center
of this trend with cloud technology, virtualization and a
software-defined approach that has upended the traditional networking
market. The company is delivering significant advancements that
address issues of bandwidth, management and security at all levels of
"We founded and incubated Virtela to help companies break free from
the constraints of traditional network architectures and services,"
said Goel. "By combining Virtela's approach with the reach and
resources of NTT, we have the opportunity to provide a new global
networking standard that is configurable, agile and can flex at the
pace of today's business."
Goel continued, "The credit and success of Virtela really go to the
employees, customers, partners and other co-investors for their
unwavering commitment and belief in our vision."
Virtela is a 400-employee company headquartered in Denver, Colorado
with global operations and delivery centers in the U.S., India and
the Philippines. The company serves more than 500 customers
worldwide, including many of the world's largest multinational
companies. Combining Virtela's advanced service/operational platforms
and expertise with NTT Com's global ICT infrastructure and resources
creates an unparalleled company able to deliver cloud networking
services, asset-light branch office networking, a Tier-1 IP backbone
and end-to-end cloud compute, storage and network services on a
With the pending sale of Virtela, eight of NVP's portfolio companies
have achieved exit success in 2013, including three IPOs in the past
five months -- FireEye (NASDAQ: FEYE); RetailMeNot (NASDAQ: SALE);
and Cyan, (NYSE: CYNI). These initial public offerings, in addition
to the sale of 41st Parameter to Experian in early October, ScaleIO
to EMC in July, Passif Semiconductor to Apple in April, and the
partial sale of NVP shares of Shriram City Union Finance Ltd (NSE:
SCUF) in January, have resulted in a combined transaction value of
more than $8 billion.
To view NTT's press release, please visit: www.ntt.com
About Virtela Technology Services Incorporated
by more than 100 awards for outstanding service innovation and
customer support, is the smart alternative to traditional global
carriers and equipment vendors for enterprise networking and
virtualized IT services. The company delivers services via its
Virtualized Overlay Network and Virtela Enterprise Services Cloud
(ESC) platform, which enables the transition of branch office
networking and security services to the cloud. Virtela gives
enterprises the benefit of "asset-light" software-defined networking
that delivers up to 80% cost savings in upfront capital and 30%
savings in ongoing operating expenses.
Virtela is headquartered in Denver, Colorado, with global support
centers around the world. For more information, visit www.virtela.net
About Norwest Venture Partners
Norwest Venture Partners (NVP) is a
leading venture and growth equity investment firm that has partnered
with entrepreneurs to build great businesses for more than 50 years.
The firm manages over $3.7 billion in capital and has funded more
than 500 companies since inception. Headquartered in Palo Alto,
Calif., NVP has subsidiaries in Mumbai and Bengaluru, India and
Herzelia, Israel. NVP makes early- to late-stage venture and growth
equity investments across a wide range of sectors including:
technology, information services, business services, financial
services, consumer products/services and healthcare. For more
information visit: www.nvp.com.
Norwest Venture Partners (NVP)
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