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Breakaway lines up $39 million in funding

The Web consultancy and application hosting provider says it has placed about 1.5 million shares of its common stock with various mutual funds managed by Putnam Investments.

    Breakaway Solutions, a Web consultancy and application hosting provider, today said it has closed $39 million in private-placement funding.

    Under the agreement, Breakaway has placed about 1.5 million shares of its common stock with various mutual funds managed by Putnam Investments, including the investment firm's Emerging Markets fund, New Century Growth fund and Voyager fund, the company said in a statement.

    Boston-based Breakaway, which provides companies with Web strategy, consulting, systems integration and application hosting services, said proceeds of the sale will be used for general corporate purposes and will help the firm rapidly grow certain business areas such as application hosting, corporate wireless initiatives and online marketplaces.

    Like its rivals in the lucrative Internet services market, Breakaway has been busy expanding its services to capture business in emerging growth areas, including wireless and business e-commerce.

    Earlier this month, the company launched a program to help clients build their online marketplaces. Dubbed MarketMover, the program offers businesses Web strategy, systems integration and application hosting services from Breakaway, along with e-commerce software from partners such as RightWorks and CommerceQuest. Through the new program, companies can be up and running with their own online marketplaces within two months.

    Breakaway has also made a big push in the wireless market after unveiling a dedicated program for mobile and wireless corporate initiatives. A number of Web services firms, including Razorfish, Agency.com, Proxicom and Sapient, have all pushed up their sleeves in the booming wireless sector, offering companies wireless strategy planning and other services.