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Xchange Secures Funding of $20.5M

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Posted September 4, 2001 By boston.internet.com Staff     Feedback

The Boston maker of CRM software says the financing will help the company achieve profitability in the fourth quarter.

Exchange Applications Inc. (NASDAQ: EXAP), a Boston maker of customer relationship management software now doing business as Xchange Inc., announced $20.5 million in convertible debt financing from several investors.

The public company, which was hit with a shareholder lawsuit earlier this year on charges that it improperly inflated a quarterly revenues statement, said the funding "will provide long-term financial stability and reinforce (its) leadership position in the analytical CRM market."

Those providing funding include Insight Venture Partners, THK Private Equities, Xchange's Chairman Andrew Frawley and other unnamed individuals.

The company said it aims for break-even earnings before interest, taxes and other charges in the fourth quarter. "Securing this financing allows us to devote 100 percent of our attention to the execution of our current business plan," said Xchagne President and CEO Chris Wagner. "We are excited about this strong endorsement from our investors and remain committed to reaching break even on an EBITDA basis next quarter."

The financing comes in the form of senior secured subordinated convertible debentures, secured by the company's assets.

Xchange's CRM products are used by nearly 300 companies around the world such as Citigroup, DaimlerChrysler, and Vodaphone.

EXAP shares, which were as high as 27 in the past year, rose .07 to .41 on news of the financing.

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