Cummins Invests In PNV.net
September 30, 1999
PNV.net, the company that provides Park 'N View services, has received a financial shot in the arm with a $31.5 million investment by Cummins Engine and two other private companies.
ABRY Broadcast Partners III, Halpern Denny Fund IV, and Cummins purchased a total of 3 million shares of PNV.net's Series D preferred stock for $10.50 a share.
PNV.net only recently filed for a $60 million public stock offering.
According to published reports, PNV.net had to seek additional funding because the construction of its truckstop-based network of "pods" providing cable, phone and Internet access has proved to be expensive. Last year, the company lost $39 million on revenue of $8.4 million. And it plans to double the size of its network by 2002. The service is currently available at more than 230 truckstops.
Since July, the company has offered its ISP service for free, but plans to start charging $10 a month starting in October. In addition to individual subscribers, the company is signing up fleets. One of the most recent is Tennessee-based U.S. Xpress, which has 4,500 drivers.