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Banyan Gets $10 million Equity Investment

Networking software and services developer Banyan Systems Incorporated announced today it received a $10 million equity investment from HarbourVest Partners.

Under the agreement, the company said HarbourVest is privately purchasing 263,158 shares of Series A convertible preferred Banyan stock at a price of $38.00 per share.

At a conversion rate of 10 common shares for each Series A convertible preferred share, Banyan said this represents a 13 percent ownership interest in the Westboro, MA-based company.

"We plan to utilize this new capital to support the growth of our Internet subsidiary, Switchboard Inc., and the expansion of our services business and intranet software initiatives," said William P. Ferry, Banyan's chairman and chief executive officer, in a statement.

"Switchboard . . . expects to capitalize on its position as one of the Internet's ten most frequently visited sites and accelerate its revenue growth by expanding its investment in activities to increase traffic and grow its advertising base."

"Additionally, I believe that this agreement brings the resources to Banyan necessary to deliver a broader range of directory-based intranet offerings and comprehensive consulting, integration and support services that appeal to both current and prospective customers."

Banyan added that Robert M. Wadsworth, managing director of HarbourVest Partners, has been elected to its Board of Directors.