Xchange lands $20.5 million in financing

Boston, MA-based Exchange Applications Inc., known as Xchange Inc., has received $20.5 million in financing from Insight Venture Partners, THK Private Equities, and other investors including Andrew Frawley, chairman of the board of Xchange. Xchange provides customer relationship management and personalization services to companies doing business over the web.

"Securing this financing allows us to devote 100% of our attention to the execution of our current business plan," said Chris Wagner, president and CEO of Xchange. "We are excited about this strong endorsement from our investors and remain committed to reaching break even on an EBITDA basis next quarter. With a healthy balance sheet, we look forward to continuing to build our partner relationships and growing our world-class client base of 300 companies."

"The clear and demonstrable value proposition associated with Xchange Real Time provides significant opportunities to customers and investors alike," said Theodore H. Kruttschnitt, principal of THK Private Equities. "We believe that, with its new leadership and financial stability, Xchange is poised to capitalize on these opportunities and embark on its next stage of growth," he said.

The financing is in the form of Senior Secured Subordinated Convertible Debentures. The debentures mature in January 2005 and carry a 12% interest rate.