Florida Digital gets $35 million investment

Integrated communications provider Florida Digital Network yesterday announced a $35 million investment led by MC Venture Partners. The investment brings the total amount the company has raised through equity to $113 million over four rounds.

The company, which offers local and long-distance calling, Internet access and other communications services to Florida businesses, has used the money to bring down its undisclosed amount of bank debt to zero.

The balance will go toward expanding Florida Digital’s market presence, said Matt Blocha, the company’s chief operating officer.

“We’re primarily using it to go deeper in our existing markets,” he said. Specifically, Florida Digital will add new central offices contiguous with its existing seven-market footprint and replace leased fiber with its own facilities.

In addition, said Blocha, some of the proceeds will go toward acquisitions that expand the company beyond its existing footprint. “Based on the fallout there are a number of opportunities we’re working with right now,” he said.

Florida Digital also announced that it reached cash-flow positive in June, two months ahead of the privately held company’s original business plans. Florida Digital’s revenues this year are expected to jump to $70 million from the $43 million generated in 2001, and the company expects to have positive net income by the end of the year.