UPDATE 1-CDNetworks gets $96.5 mln in private investment

(Adds comments from interview)

NEW YORK, Dec 19 (Reuters) - South Korean Web content delivery company CDNetworks Co Ltd (073710.KQ: Quote, Profile, Research, Stock Buzz) said on Wednesday it will receive $96.5 million in private investment that it planned to use to expand in the United States.

CDNetworks, the top Web acceleration service provider in Asia, said U.S. venture capital firm Oak Investment Partners will lead the investment, with South Korea's Shinhan Private Equity and Goldman Sachs joining.

The move comes amid increased competition in the business of helping companies deliver data, video and other Internet content faster by navigating less congested routes over the Web.

"The additional funding will help CDNetworks fortify our Asian market leadership and our service offerings, while accelerating our entry into the United States and other markets," said Samuel Ko, founder and CEO of CDNetworks.

CDNetworks ranks No. 3 worldwide in the content delivery network (CDN) industry, behind Akamai Technologies Inc (AKAM.O: Quote, Profile, Research, Stock Buzz) and Limelight Networks Inc (LLNW.O: Quote, Profile, Research, Stock Buzz), according to industry data.

The company will issue an additional 5,285,034 shares at17,000 won. The three investors will enter into a one-year lock-up agreement and representatives from Oak and Shinhan will join its board.

Steve Chung, the company's vice president of business development, said the company was considering various expansion measures, including acquisitions and capital spending.

"What this is, is us having reviewed many, many companies in Japan, China and the U.S. and believing that there are real opportunities for us to invest in great companies," he told Reuters.