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Atrica raising $70m, foreign investors pledge $40m

Local hi-tech data firm reports. "Light Reading" estimated last month round would come to $30m

Foreign investors have committed $40 million in the third financing round that Atrica is poised to complete, reports Dolev and Abramovitch Hi-Tech Information. D&A said that the financing round could come to $60 to $70 million.

D&A said that Atrica is also raising $20 million or more from Israeli investors.

A month ago optical networking site Light Reading cut the estimated scale of the round to just $30 million.

Reports of the firm's third financing round first started circulating in early 2001. The reports estimated the round anywhere between $40 million and $80 million. A month ago Light Reading reported that the round would come to $30 million at a pre-money company value of $60 million. Light Reading said that the round was to be led by US venture capital fund St. Paul Venture Capital, its first Israeli investment.

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At the time Atrica confirmed it was engaged raising funds but declined to disclose the volume. The firm has not responded to the latest news.

Atrica, founded in 2000, develops optical Ethernet solutions for metropolitan networks. Its solutions combine data communications technology and high transmission rates available on optical networks.