Megaport has raised $17.85 million through a private placement of 10,500,000 fully paid ordinary shares, the company announced today.
The company entered a trading halt ahead of the announcement.
The capital raising is being used to fund the expansion of the ASX-listed company’s network interconnection platform, particularly in Europe and North America. The funds raised will also be used for staffing, marketing and general working capital requirements, the company said.
Settlement of the placement is expected on 4 August, with shares allotted on 5 August.
The company also announced a share purchase plan for existing shareholders.
In addition Megaport today said it will acquire PEERING GmbH, Germany's second largest Internet Exchange operator. ECIX, the brand under which the company trades, has 30 points of presence in Germany.
The company has also acquired Bulgaria-based pan-European network services provider OM-NIX. The two acquisitions cover 48 sites within Europe, Megaport said. In total the acquisitions will cost Megaport A$3.1 million.
“On completion of the transactions Europe will become Megaport’s largest market in terms of coverage and revenue,” Megaport CEO Denver Maddux said.
In January, Megaport announced an agreement with the Amsterdam Internet Exchange to offer expanded interconnection options for the two organisations’ customers.
Megaport listed on the ASX in December. For the half year ending 31 December it reported revenue of $1,001,079.