Solinet Systems Closes Record Financing Round of $144M

On May 24, 2001, Solinet Systems, an Ottawa-based developer of innovative solutions for the next generation of core optical networks, completed a $144 million private placement to a group of investors led by U.S. Venture Partners. Also participating in this round were first round investors, Bessemer Venture Partners, Worldview Technology Partners and Altamira Financial Services Ltd., as well as new investors, New Enterprise Associates, AltaPartners and a number of strategic optical and semiconductor component suppliers. This financing ranks as Canada’s largest private equity infusion into a telecommunications company.

Craig Wright and Alex Kilgour of Osler, Hoskin & Harcourt LLP acted as Canadian counsel to Solinet. Richard Stein, Jonathan Gothorpe, Kerry McGinn and Shefali Shah of Hutchins, Wheeler & Dittmar in Boston, Massachusetts acted as US counsel to Solinet. Tom DeFilipps and David Jedrzejek of Wilson Sonsini Goodrich & Rosati’s Palo Alto office acted for the lead investor in the transaction.