Financing Led by Sandler Capital Management, a $1.5 Billion Private Equity Fund
NEWARK, Calif.— July 29— Advanced Data Exchange (ADX), a provider of supply chain automation services, today announced that it has completed a $10 million fourth round of financing led by Sandler Capital Management, a private equity firm which manages more than $1.5 billion in assets. GKM Ventures and existing investors Talkot Capital, Wasserstein Adelson Ventures, Net Market Partners, iCentennial Ventures, and Ovation Capital Partners, along with individual members of the board of directors and senior management, have also participated in the round. ADX will use these funds to accelerate sales and marketing efforts, furthering the substantial momentum established by the company in key market sectors over the past 18 months.
"The successful conclusion of this financing in the current investment environment is a strong confirmation of our value proposition and ADX's excellent record of performance for customers," said Andrew T. Duncan, president and CEO of ADX. "We are especially delighted to receive this endorsement and backing from the seasoned and respected teams at Sandler Capital and GKM Ventures."
ADX helps companies expand the success of business process automation beyond their own enterprises to streamline outdated, manual processes they share with their suppliers. ADX Network services let large enterprises connect to one universal, any-to-any translator to exchange business documents, such as purchase orders, advanced shipping notices and invoices, electronically with all of their suppliers. Now, for the first time, enterprises can achieve a truly touchless, machine-to-machine process that drives measurable cost savings right to the bottom line.
Duncan noted that Sandler Capital has exceptional operational experience that ADX will draw upon to meet the demands of its growth. Sandler Capital is well known for making substantial investments in large, network-based businesses in communications industries, and it has successfully transferred insights gained from these investments to similarly structured early-stage companies across industries. Duncan also noted that the principals at Sandler Capital and GKM Ventures bring significant capabilities to ADX in terms of expertise in mergers and acquisitions in software and services businesses, which enhances the Company's capacity to leverage ADX Network as the platform for industry consolidation.
"ADX has brilliantly positioned itself to capture this enormous market opportunity," said Samantha McCuen, Managing Director, Sandler Capital Management. "By enabling suppliers to send and receive EDI and XML translated business documents simply and affordably, ADX solves the most pressing problem of supply chain automation: streamlining processes between companies."
"ADX has recently delivered a large, measurable return on investment for its customers, while creating efficiencies throughout the supply chain," said Jonathan Bloch, Managing Director, GKM Ventures. "We are excited about the future opportunity for ADX Network to provide companies connected to it with expanded services for supplier management, payment, logistics and much more. ADX has the management team, customer base and proven technology necessary to expand its market leadership role and emerge a clear winner in supply chain automation."
As part of the funding, Samantha McCuen and Jonathon Bloch have joined ADX's board of directors. Samantha and Jonathon join Tom Akin, Managing Partner, Talkot Capital; Charles Finnie, Managing Director, Apex Partners; Tom Kippola, Managing Director, The Chasm Group and Andrew Duncan, Founder and CEO, ADX.