IPVG sells stake in Prolexic Tech

MANILA, Philippines - Publicly listed technology conglomerate, IPVG Corp. recently sold part of its equity stake in Prolexic Technologies, Inc. (Prolexic).

Founded in 2003 and headquartered in the United States, Prolexic was the first company to establish global scrubbing centers to stop DDoS (distributed denial-of-service) attacks in the cloud.

Leveraging unique filtering techniques, high-speed bandwidth and peering, advanced routing and other patent-pending devices, Prolexic provides the most advanced and powerful DDoS detection and network protection systems available.

IPVG sold a portion of its equity stake in Prolexic to Kennet Partners (“Kennet”), a leading technology growth equity investor, for $13.86 million. Moreover, an additional $2.88 million will be paid to IPVG from the sale of shares to management team members over an agreed upon vesting period. Lastly, IPVG will be providing a $3.3 million loan to Prolexic at an interest rate of 10 percent per annum to further support the company’s expansion plans.

IPVG originally acquired Prolexic for $10.5 million in early 2008, and, since then Prolexic has more than doubled its revenues. The equity sale resulted in a significant financial gain for IPVG and does not include the future upside potential of IPVG’s remaining equity stake in Prolexic.

IPVG CEO, Enrique Y. Gonzalez, commented, “we are extremely pleased with the entry of Kennet into Prolexic. Kennet’s successful track record in the technology space clearly illustrates the significant value they add to their portfolio companies. With Kennet’s entry, we are quite confident that our remaining equity in Prolexic will surely increase in value. The transaction with Kennet resulted in significant proceeds for IPVG, which further strengthens our war chest and ability to pursue new investment opportunities.”

Roger Stone, who will remain on Prolexic’s board as IPVG’s representative said, “the entire company is excited about the belief Kennet Partners has shown in Prolexic Technologies through this new investment. This next phase in the company’s growth plan comes at a time when DDoS has established itself as a recognized and increasing threat to commerce on the Internet. No part of society is immune from attack and the consequences can be operationally and commercially disastrous for unprotected organizations. I am honored to have helped the company grow over the last three years, and I look forward to working with the Prolexic board during this next phase of the company’s development.”

Kennet’s Gustavo Alberelli added, “as organizations of all sizes increasingly adopt Cloud computing solutions, DDoS and cyber attacks have soared in both frequency and sophistication. Prolexic has quickly emerged as the leader in Cloud Security and demand for its differentiated products has intensified. Kennet looks forward to building Prolexic into an industry leader.”