Mobile Communications and software provider Xata Corp. received a $3.1 million influx of cash from a pair of venture capital funds, the company reported Friday.
The money will be used “to strengthen the company’s balance sheet by increasing operating cash,” Xata said in a statement.
The money will also be used to pay down the debt that financed Xata’s 2008 acquisition of mobile communications provider Geologic.
Trident Capital Management, Westport, Conn., and Weber Capital Management, San Francisco, provided the cash for the deal, Xata said.
The investment took the form of a private placement of newly created Xata convertible stock, and warrants for the two venture capital companies to purchase additional shares of Xata’s common stock.
Both Trident and Weber had equity stakes in Xata prior to the latest capital infusion, Xata said. Trident has a 38% stake in the Minneapolis-based technology provider, while Weber owns a 4% share.