RealTime IT News

Surebridge Spans Financing Need

Surebridge, a Lexington, Mass., application service provider (ASP), has raised $15 million in venture capital and secured a $5 million credit line. The money will be used for equipment purchases and sales and marketing.

Axxon Capital, The Berkshire Group, Compaq Computer Corporation, Providence Growth Investors, Spectrum Equity Investors, The Goldman Sachs Group, and a group of executives at Thomas H. Lee Partners participated in the equity round. Fleet National Bank provided the debt financing.

After closing on the new investment, Surebridge will have $27 million in cash reserves. Stephanie Khurana, Surebridge's CEO, said the backing is earmarked to develop a customer service portal, enhance employee programs and expand data center services.

In conjunction with Compaq's investment, Surebridge has also entered into an alliance with the Houston computer maker where it will joint market products and services as well as begin using Compaq's servers and storage systems.

Founded in 1997, Surebridge's target customers are mid-sized companies. It hosts enterprise resource planning and customer relationship management applications for more than 60 companies including Aberdeen Group, DefendNet Solutions, Hill Holliday, Robinson Nugent, and Sterngold.

"By successfully providing mid-market companies access to critical business applications usually reserved for the Fortune 500, Surebridge has demonstrated great traction in the market and achieved tremendous results," said Michael Kennealy, a Spectrum Equity Investors general partner.

Privately held Surebridge employs 220 people. In addition to its headquarters, it has regional offices in Atlanta, Chicago and San Francisco.