August 29, 2002 — (WEB HOST INDUSTRY REVIEW) — Enterprise solution provider divine Inc. (divine.com) announced on Wednesday that it has closed its second financing placement, led by venture capital firm Oak Investment Partners, following a special meeting of stockholders held on Tuesday.
divine says that with the action, it has completed the $61.6 million Oak-led equity investment. Also approved at the meeting was the 2002 Employee Stock Purchase Plan.
“This investment by Oak, as well as our ability to achieve organic revenue growth quarter over quarter during this challenging economic climate, underscores the market demand for our solutions that support companies’ extended enterprise initiatives,” said divine chairman and chief executive officer Andrew Filipowski. “With the momentum we are seeing in the marketplace and the additional financial resources that this investment provides, we believe we have the right mix of offerings and the solid financial footing to achieve our business and financial goals.”
According to the terms of the agreement, Oak Investment Partners and other investors have made an equity investment totaling $61.6 million in divine in two separate placements. On Tuesday, divine stockholders approved the transaction, which met the conditions for closing the $38.7 million second placement.
Combined with the shares acquired in the first closing, Oak?s shares of convertible preferred stock are currently convertible into a total of 16,078,456 shares of divine common stock.
