NetDimension Closes Facility with Silicon Valley Bank
NetDimensions announced a $5 million finance facility with Silicon Valley Bank. The facility is comprised of two types of facilities: a working capital line and a term loan.
The working capital line is up to $1.5 million in the first year increasing to $2 million on the first anniversary. This facility is for 24 months.
The term loan is up to $3 million with a 36-month term.
To secure the finance facility, the company provided collateral in the form of fixed and floating charges on all assets.
The SVB facility follows on from the highly successful share placing in May, which raised $6 million net of fees. On the back of the share placing the company commenced its multi-year business plan to substantially increase sales revenues, targeting $50 million in annual sales revenues within five years. To achieve this target the company, in addition to investing for organic growth under the current business plan, intends to pursue additional selective acquisitions that bring complementary offerings in terms of market reach, technology, products or services.
The company now has financial facilities in place providing headroom of approximately $14 million in funding to pursue its business plan and accelerate investment to drive growth. The company intends to use the SVB facility for funding its acquisition strategy.
Teresa Li, managing director, Silicon Valley Bank, said, “Silicon Valley Bank is very excited to have the opportunity to support NetDimensions’ global expansion plan. We are committed to be NetDimensions’ long term trusted advisor and look forward to growing with the Company over time.”
Matthew Chaloner, chief financial officer of NetDimensions, said,
“We are delighted to be partnering with SVB. The facility provided by them gives us the flexibility along with our existing cash resources to accelerate investment into the business and pursue our acquisition strategy as part of our business plan. We are looking forward to working with SVB in the future and driving the business forward.”
NetDimensions is a global provider of performance, knowledge and learning management systems.