SALT LAKE CITY, UT – IKANO Communications, the nation’s largest provider of private-label Internet services, announced that it has secured a $16.5 million credit facility from Hercules Technology Growth Capital Inc.
IKANO has entered into the agreement with Hercules to establish a senior secured loan facility in the total amount of $16.5 million. On April 19, 2005, the initial closing, IKANO immediately drew down $5.0 million of the line. IKANO will utilize the net proceeds to fund acquisitions, including the recent purchase of the subscriber base of Amerion, a Washington state-based Internet Service Provider. IKANO will seek additional opportunities for the remaining amounts under the line.
"We are thrilled to have Hercules Technology on board as a capital provider,” said Henry Smith, IKANO president and CEO. “This funding will enable us to complete a number of key acquisitions including Internet Service Providers and related companies.”
During the past year, IKANO has purchased the subscribers and some related assets of approximately 15 Internet Service Providers.
IKANO partners with Internet Service Providers to help reduce operating costs, increase revenue and expand geographic reach/product offering. IKANO’s private-label platform supports turnkey dial-up, DSL, VoIP, wireless access solutions, email/webmail, IM, hosting, billing, branded customer service/technical support, and automated accounting.
IKANO is an Inc. 500 company, with more than 500 business clients and 300 employees. Headquartered in Salt Lake City, IKANO has additional offices in Logan, Ohio; Toronto, ON; and Pasco, Washington.
About IKANO
Stemming from the classical Greek word meaning, “to enable,” IKANO is the market-leading enabler of private-label Internet services. IKANO partners with Internet Service Providers to help reduce operating costs, increase revenue and expand geographic reach/product offering. IKANO is the parent company of SISNA, one of the nation’s original Internet Service Providers; Interhop/auracom, offering ISP franchises and consumer Internet services throughout Canada; and HOTSPOTZZ, one of the largest private providers of Wi-Fi hot spots. IKANO served as the official network provider for the 2002 Winter Olympic Games. For more information visit http://www.ikano.com.
About Hercules Technology Growth Capital
Hercules Technology Growth Capital is a leading specialty finance company focused on providing growth capital to technology and life sciences companies at all stages of development. Hercules Technology investment professionals have 145 collective years of experience in venture capital, operating, specialized technology lending, acquisition finance and leveraged leasing experience. Hercules Technology has offices located in Palo Alto, CA.; Boston, MA.; and Chicago, IL. Additional information can be found at: http://www.herculestech.com.
