In defiance of the slumping telecommunications industry, Grande Communications secured an additional $15.2 million in equity funding from backers who have already invested in the provider of bundled high-speed Internet, local and long distance phone and cable television services.
The investment round, led by Whitney & Co., LLC, The Centennial Funds and Austin Ventures, will support the company's continued construction of an all-new deep-fiber broadband network in several Texas markets.
This marks Grande's sixth round of funding and one of the largest investment rounds of the year for Central Texas companies. In 2000, Grande set a Texas record for first-round funding with $233 million invested by various backers. To date, Grande has raised $463 million in equity and $70 million in debt for a combined $533 million in capital.
"Our teams have worked hard and we continue to exceed our performance goals, despite a soft economy," said William Morrow, vice chairman and chief executive officer at Grande. "This infusion of acceleration capital is a strong vote of confidence from our investors that Grande will continue to beat their expectations."
Grande, which is building a high-speed broadband network along the Austin/San Antonio I-35 corridor, acquired ClearSource Inc. in June 2002, adding a total of 12 franchises, including Waco, Corpus Christi, Midland and Odessa, to the 30 franchises Grande had secured since the company was founded in December 1999. The combined company has approximately 700 employees throughout Texas.
"Management has the team focused on growing its business while supporting the communities it serves," said William Laverack, a managing partner with Whitney & Co. "That's exactly the right combination it takes to attract new investment in the telecom sector right now."
"Grande continues to make progress in the face of an adverse market," said Blaine Wesner, a partner with Austin Ventures. "They've maintained their track record of meeting operational, infrastructure implementation and financial goals."
For more information about Grande Communications (San Marcos, TX), visit the company's website at www.grandecom.com.