The third time is the charm--or at least messaging application service provider United Messaging Inc. hopes that's true.
United Messaging, which provides hosted E-mail services to medium and large companies, has secured a third round of funding worth $70 million with the help of investment advisers from Broadview Capital Partners, bringing its total assets to $106 million. The company plans to use its latest cash infusion to expand the business in Europe and the Asia-Pacific region; to acquire new customers; and to develop features such as unified messaging, which routes voice mail to a customer's E-mail, says Ron Rodgers, CFO of United Messaging. Rodgers says overseas expansion plans include opening offices and adding to its 21-person sales force in London.
If United Messaging meets its sales goals and adds to its list of 85 clients, it's scheduled to turn a profit for the first time by next summer, Rodgers says.
Charging medium and large companies for E-mail services has the potential to produce profits for United Messaging, says Mark Levitt, a research director with International Data Corp. "United Messaging, compared to its competition, is unique because it is targeting a customer that is used to paying for E-mail service and will not rely on a free model."