By Christopher Zinsli
Of DOW JONES VENTUREWIRE
Data-center consultant GlassHouse Technologies Inc. said it has
received a strategic investment from publicly traded virtual
computing company Citrix Systems Inc.
The investment gives Citrix an observer seat on the GlassHouse
board. Financial details of the deal weren't disclosed.
Framingham, Mass.-based GlassHouse, which registered its second
bid for an IPO early last year, earlier turned to outside investors
last summer when it raised $3 million in convertible notes from its
venture capital backers.
GlassHouse has relied on investors including GrandBanks Capital,
Greenspring Associates, Kodiak Venture Partners, Paladin Capital
Group and Sigma Partners to support its operations as it focused on
growth.
However, the company said last summer that intends to become
profitable in 2011 by eliminating overlapping expenses, increasing
revenue and replacing low-margin revenue streams.
The company said it has been approved to apply for a listing on
the New York Stock Exchange under the symbol GLAS. Goldman Sachs
& Co. and Credit Suisse are the offering's lead
underwriters.
(This story was also published in Dow Jones VentureWire, a daily
publication that covers news about start-ups and venture
capital.)
-By Christopher Zinsli, Dow Jones VentureWire; 212-416-2034;
christopher.zinsli@dowjones.com