IXnet Inc. –

NEW YORK – IXnet Inc., a worldwide provider of communications services to the financial services industry, went public August 12, offering 6.5 million shares of common stock at $15 apiece. The company’s stock priced below its $18 to $20 filing range.

Underwritten by Donaldson, Lufkin & Jenrette, Salomon Smith Barney, Merrill Lynch & Co., First Union Capital Markets Corp. and DLJdirect, the initial public offering left 49.6 million shares of stock outstanding.

Venture backers included Allegra Capital Partners, Cable Systems Holding and Chesapeake Partners Management Co. IPC Communications owns 87% of the company. There were no selling shareholders.

The company’s Extranet, provides clients with a communications network to connect financial services firms and their business partners, as well as multiple offices within the same firm. The Extranet allows customers to obtain secure and fully manageable voice and data connectivity without having to access multiple disparate public networks or multiple customer service organizations.

The company expects to use the estimated $88.8 million generated in the IPO for continued development and expansion of its global Extranet and to cover expenditures of about $57.7 million in the 12 months following the offering. The company also might consider acquisitions, strategic alliances or investments in property or assets related to its business.

IXnet has never been profitable, losing $15.2 million in 1997 and $27.6 million in 1998.

Richard Cashin, Jr., a director of Cable Systems International Inc., joined the board in April 1998. Richard Smith, a general partner at Allegra Capital Partners III, has served as the company’s director and chairman of the board since May. Peter Woog, president and chief executive officer and a director of Cable Systems Holding Co., joined the board in May.

IXnet – Selected Financial

(in thousands, except per share data)

Year Ended September 30 Six Months Ended March 31

1996 1997 1998 1998 1999

Total revenue 3,459 17,838 35,853 15,318 32,611

Net loss -6,179 -15,208 -27,639 -10,252 -20,117

Net loss per share -0.14 -0.35 -0.64 -0.24 -0.47