25 April 2005
Solace Systems Announces Closing of New Investment

TechFinance.ca News Service - Monday April 25, 2005 - Solace Systems, a developer of carrier-scale multiservice message routing, announced today that it has secured a new round of financing. EdgeStone Capital Partners, through EdgeStone Capital Venture Fund II, led the infusion of capital, and was joined by Ontario Teachers Pension Plan/Teachers' Private Capital and "international state, hedge, and private equity investment funds".

Solace Systems did not disclose the amount of the investment. The deal (a major investment) closed in early March 2005.

Solace Systems intends to use the funds to expand its global sales and support capabilities and to develop its next-generation of message routing solutions.

In conjunction with the investment, Samuel Duboc, Founder and Managing Partner of Edgestone Capital Partners, and Derek Smyth, Partner at Edgestone Capital Partners, join Dr. Terence Matthews (Chairman of Solace and Wesley Clover International), Jose Medeiros (President of Wesley Clover), Ian McLaren, and Craig Betts (President & CEO of Solace Systems) on Solace Systems’ board of directors. McLaren currently sits on the board of March Networks and likely is a nominee of Wesley Clover.

"Our investment in Solace Systems is a testament to the vision, execution, and determination of the Solace team to achieve market leadership and success," said Derek Smyth, partner at EdgeStone Capital Partners. "As IP networks evolve to better address fast-growing application traffic, we believe a tremendous opportunity exists for introducing content intelligence in the network. With successful customer deployments and strong endorsement from industry experts, Solace Systems is poised to capture a significant portion of that opportunity."

"Adoption of message routing is another example of the IP innovation wave sweeping global carriers," said Sir Terence Matthews, Chairman of Wesley Clover. "It represents a natural evolution towards greater functionality in the IP network and a fantastic opportunity for service providers to capture new revenue streams."