cPacket Networks has successfully completed a transaction for $67 million. This latest funding included a debt refinancing by Trinity Capital (Nasdaq: TRIN) as well as a main and secondary equity investment by funds managed by Morgan Stanley Expansion Capital. With the new funding, cPacket plans to accelerate product development with 400Gbps Observability nodes, expand its cloud and hybrid footprint, and introduce AI/ML applications for business insights, while expanding global marketing and sales activities.
“cPacket has demonstrated consistent and highly efficient growth and we are excited to partner with Brendan and his talented team to execute on the next chapter of success,” said Pete Chung, Head of Morgan Stanley Expansion Capital. “The increasing complexity and performance required of modern enterprise networks is driving increasing need for high-quality, real-time packet data and analytics. Many of the world's most demanding customers trust cPacket to inform their critical decisions and cPacket is at the forefront of technological leadership in the market.”
With the new investment, cPacket Networks intends to speed up the development of its products, which will include the introduction of 400Gbps Observability nodes, the expansion of its cloud and hybrid footprint, and the introduction of unique applications of artificial intelligence and machine learning to provide profound yet business-relevant insights from customers' packet data. In addition to this, the corporation will proceed with expanding its marketing and sales activities everywhere in the world.
Financial Services, Healthcare, High-Tech, Government
Morgan Stanley Expansion Capital has a long history of making profitable investments in well-established businesses that are considered to be in the late stages of expansion, such as cPacket. The cPacket team will harness Morgan Stanley Expansion funding's expertise in offering strategic counsel and a global perspective in addition to additional funding in order to assist in building upon the momentum that cPacket has already established.
“We are delighted to have the support and endorsement of Morgan Stanley Expansion Capital and Trinity Capital,” said Brendan O’Flaherty, CEO cPacket Networks. “We will strategically utilize their funding to drive market expansion and talent acquisition, as we accelerate delivery of our ground-breaking network observability solutions for our clients across financial services, healthcare, high-tech and government sectors.”
In connection with the transaction, Citizens JMP Securities exclusively served as a financial consultant to cPacket Networks.
Trinity Capital, a supplier of comprehensive financing solutions to development stage firms with institutional equity investors, is the source of the debt investment. Trinity has made $3 billion in investments since its founding, “demonstrating its breadth of expertise, depth of experience, and track record in development stage financing.”
“We are excited to partner with cPacket as it expands its market leading network observability technology to address the needs of its blue-chip enterprise customer base,” said Jack McNamara, Director, Tech Lending at Trinity.
