Critical Path raises $95 million
Critical Path, a developer of e-mail systems and software for businesses, says it has raised $95 million in equity financing led by technology investment firm General Atlantic Partners. The funding, comprising $30 million in cash and $65 million in debt payments, is fuel to "accelerate growth and leadership in the global messaging industry," according to Critical Path Executive Chairman David Hayden. With the investment, Critical Path will issue about 52.4 million shares of new convertible preferred stock and warrants to purchase 2.5 million shares of the company's common stock. Cheung Kong (Holdings), Hutchison Whampoa and Vectis Group also participated in the investment. The investment follows a period of restructuring at the San Francisco-based company. Since April, it has cut nearly half its staff, refocused its products and services, and consolidated facilities. Last week, the company also said it would settle a shareholder lawsuit by paying $17.5 million in cash and issuing warrants to buy 850,000 shares of the company's common stock at an exercise price of $10 per share.
The investment follows a period of restructuring at the San Francisco-based company. Since April, it has cut nearly half its staff, refocused its products and services, and consolidated facilities. Last week, the company also said it would settle a shareholder lawsuit by paying $17.5 million in cash and issuing warrants to buy 850,000 shares of the company's common stock at an exercise price of $10 per share.