Telecom leads IPO turnaround

Service Provider News Report This newsletter is sponsored by Netcordia Network Downtime, the Configuration Error Are you missing easy ways to make your network more reliable? Learn steps you can take and tools you can use to avoid downtime. Network World's Service Provider News Report Newsletter, 07/18/07 Telecom leads IPO turnaround By Carolyn Duffy Marsan The second quarter of 2007 was the best quarter for IPOs since the peak of dot-com mania in 2000, and some of the biggest contributors were telecom and networking companies. Overall, 22 venture-financed companies raised $2.73 billion in IPOs last quarter, more than double the amount of money raised a year ago, according to the Quarterly Liquidity Report from Dow Jones VentureOne. This represents the most amount of money raised via IPOs since the third quarter of 2000. So far this year, $3.93 billion was raised through venture-backed IPOs which is more than the total amount of money raised through IPOs in 2006. Network World LAN/WAN Buyer's Guide Find the right LAN/WAN products for your enterprise - fast. Our extensive database of detailed product information will help you quickly pinpoint what you need. With the side-by-side comparison tool you can evaluate product features and make the best decision for your enterprise. Click here to go to the Buyer's Guide now. The largest deal of the quarter was the $862.5 million IPO for MetroPCS, a Dallas carrier that provides wireless services to 3 million subscribers in seven major U.S. metropolitan areas. Other IPOs in the telecom and networking space were: * AuthenTec, a Melbourne, Fla., maker of biometric scanning devices for PCs, laptops and other wireless devices. * Cavium Networks, a Mountain View, Calif., maker of integrated circuits used in routers, gateways, appliances and other network devices. * Data Domain, a Santa Clara provider of enterprise data backup and storage systems. * Infinera, a Sunnyvale, Calif., provider of digital optical backbone equipment for carriers. * Starent Networks, Tewksbury, Mass., provider of hardware and software for wireless carriers that supports multimedia applications. * Veraz Networks, a San Jose provider of VoIP equipment and software for service providers. Meanwhile, merger and acquisition activity declined during the quarter as more venture capitalists chose IPOs as their preferred exit strategies, the report said. The report found that 81 companies completed mergers and acquisitions during the last quarter for a total of $7.5 billion. This is down from the 110 M&A deals completed in the same quarter a year ago, and represented the lowest amount of M&A activity since 2003. "More venture-backed technology companies are opting to take advantage of the favorable IPO market and compensating for the slight downturn in the number of overall mergers and acquisitions, which had been the most common path to liquidity for several years," said Jessica Canning, director of global research for Dow Jones VentureOne in a statement. The largest venture-based acquisition of the quarter was Microsoft’s $800 million purchase of Tellme Networks, a mobile search provider based in Mountain View, Calif.   What do you think? Post a comment on this newsletter

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Contact the author: Carolyn Duffy Marsan is a senior editor with Network World and covers emerging Internet technologies and standards. Reach her at cmarsan@nww.com This newsletter is sponsored by Netcordia Network Downtime, the Configuration Error Are you missing easy ways to make your network more reliable? Learn steps you can take and tools you can use to avoid downtime. ARCHIVE Archive of the Service Provider News Report Newsletter. BONUS FEATURE IT PRODUCT RESEARCH AT YOUR FINGERTIPS Get detailed information on thousands of products, conduct side-by-side comparisons and read product test and review results with Network World’s IT Buyer’s Guides. Find the best solution faster than ever with over 100 distinct categories across the security, storage, management, wireless, infrastructure and convergence markets. Click here for details. PRINT SUBSCRIPTIONS AVAILABLE You've got the technology snapshot of your choice delivered to your inbox each day. Extend your knowledge with a print subscription to the Network World newsweekly, Apply here today. International subscribers, click here. SUBSCRIPTION SERVICES To subscribe or unsubscribe to any Network World newsletter, change your e-mail address or contact us, click here. This message was sent to: networking.world@gmail.com. Please use this address when modifying your subscription. Advertising information: Write to Associate Publisher Online Susan Cardoza Network World, Inc., 118 Turnpike Road, Southborough, MA 01772 Copyright Network World, Inc., 2007