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back to list10.9.2000
CASSELBERRY, Fla., Oct. 9 (LocalBusiness.com) -- With its initial public offering on hold, Duro Communications has announced a new round of $10.4 million in venture capital along with a name change.
Duro Nets $10 Million, Changes Name
The Internet and data services provider will now be known as DUROCOM. The firm was previously a holding company for its 10 regional ISP brands. It will now consolidate its 270,000 customers throughout the Southeast under the new name brand.
"We believe that as acquisition activity slows down, that moving forward as one company and one brand in the future enables us to scale the business more effectively," said company founder, president and chief executive Peter Hopper in a prepared statement.
That strategy is being backed with a new infusion of cash from a third round of equity financing. Participants include DUROCOM's investors from earlier rounds such as Great Hill Partners, First Union Equity Partners, Bridge East and the Canadian Imperial Bank of Commerce (CIBC).
In the two previous rounds, DUROCOM netted about $100 million in venture capital.
In an emerging company profile, First Union's Pearce Landry told LocalBusiness.com that investors think Duro is on the right track, citing its strategy to bring broadband and digital subscriber line (DSL) service to "second- and third-tier markets across the Southeast where demand is strong and competition from other major providers is typically weak."
The one place DUROCOM is not looking for money, yet, is the public market. The company filed for a $144 million IPO back on April 14. But nearly six months later, the company has not set an offering date and the number of shares.
According to its registration statement with the Securities and Exchange Commission, the company -- which has been buying up Internet services providers and competitive local exchanges across the Southeast -- intends to use $20 million of the IPO proceeds for facilities and network expansion, and the rest for general corporate purposes.
Between its Feb. 19 founding and Dec. 31 last year, DUROCOM reported a loss of $11.9 million, or 37 cents per share, on revenues of $22.5 million.
In Central Florida, DUROCOM's ISP holdings include Melbourne-based Metrolink and MPInet in Orlando, which is its largest market.
According to company documents, Duro commands one of the largest facilities-based data networks in the Southeast with two carrier-class data centers, 20 switching/co-location sites, and three customer service centers in Orlando; Knoxville, Tenn., and New Bern, N.C.