80 Million Ways to be Agile

  • Written By: A. Turner
  • Published On: August 11 2000



80 Million Ways to be Agile
A. Turner - August 11, 2000

Event Summary

On July 26, 2000, Agilera, an application service provider (ASP), announced the signing of a definitive agreement for $80 million in its second equity financing. Agilera will use the financing to fuel the expansion of the company's general operations, including the development of its operations centers and the expansion of its business model.

Agilera's second equity financing was led by First Union Capital Partners LLC, with other first-time investors Providence Equity Partners, Lonetree Partners and C.E. Unterberg,Towbin. Existing investors Verio Inc. (Nasdaq: VRIO), and Centennial Ventures, demonstrated their continued belief in and commitment to the company by increasing their respective investments, with their combined contribution totaling more than half of the $80 million.

Upon the closing of this round of financing, Verio, will be the company's largest investor, having invested a total of $50 million in Agilera. Agilera-founder CIBER, Inc. (NYSE: CBR), was also instrumental in facilitating Agilera's second equity financing. Agilera also welcomes David Scanlan of First Union Capital Partners to the Agilera Board of Directors.

Agilera's equity financing will close when Hart-Scott-Rodino approval is received.

Market Impact

Agilera is a pure-play application service provider (ASP) that provides a flexible hosting platform for IT and e-business operations. Unlike competitors USinternetworking and Interliant, which are public, Agilera is dependent on investor capital to sustain its growth.

As detailed in our recent vendor note, "Agilera: Making e-Business Agile" a critical requirement for Agilera will be the successful execution of a strong brand campaign. With the combined resources of Ciber and Verio as well as partnerships with Commerce One, Ariba, Lawson, Siebel and others, their portfolio is impressive. Success, however, will be determined by their ability to market and deliver their services. With the influx of capital, and a pending acquisition of Verio by Japan's NTT corporation, we anticipate a 75% degree of success.

User Recommendations

Users considering outsourced solutions may benefit from Agilera's recent developments. With ample operating capital users may expect to see new Agilera data centers. With a market burgeoning with ASP offerings users have several choices. Further, several ASP's (Managed Ops.com, Infinium, Agilera, AT&T and many more) are creating sizable data centers. The data facilities offer state-of-the-art connectivity, which is positive for users. It also means ASP's are anxious to fill their server farms quickly. Obviously, there is much more to the relationship, but an empty data center represents a negotiation point worth exploiting.

 
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