Investment Summary

First Analysis, Paladin Capital Group and Dunrath Capital Invest In Initiate Systems

On June 26, 2008, venture capital firm First Analysis, growth capital firm Paladin Capital Group and private equity firm Dunrath Capital invested in software company Initiate Systems

Investment Highlights
  • This is First Analysis’ 4th, Paladin Capital Group’s 9th and Dunrath Capital’s 4th transaction in the Software sector.
  • This is First Analysis’ 27th, Paladin Capital Group’s 31st and Dunrath Capital’s 9th transaction in the United States.
  • This is First Analysis’ 2nd, Paladin Capital Group’s 2nd and Dunrath Capital’s 2nd transaction in Illinois.
Investment Fate
  • Initiate Systems was sold to a publicly-traded strategic buyer in 2010.

Investment Summary

Date 2008-06-26
Target Initiate Systems
Sector Software
Investor(s) First Analysis
Paladin Capital Group
Dunrath Capital
Deal Type Venture

Target

Initiate Systems

Chicago, Illinois, United States
Initiate Systems is a provider of master data management (MDM) software, which enables organizations to strategically leverage and share critical data assets by delivering a comprehensive, secure single view of citizens to government.

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Investor(S) 3

Investor

First Analysis

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Venture Capital Firm
Founded 1981
PE ASSETS 800M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

First Analysis is a financial advisory and investment firm. First Analysis' private equity arm targets investments in growth companies at all stages of development. The Group looks for opportunities based primarily in the US and can commit up to $10 million of equity per transaction. Sectors of particular interest include outsourced services, (business/government services, education, environmental services, healthcare services, marketing services); information technology, (business integration, call centers, healthcare IT, network security, open source, sensor systems, transaction processing); and chemistry enabled businesses (advanced materials, chemicals, healthcare products, polymers, purification). First Analysis was formed in 1981 and is based in Chicago, Illinois.


DEAL STATS #
Overall 29 of 60
Sector: Software M&A 4 of 12
Type: Venture M&A Deals 12 of 30
State: Illinois M&A 2 of 7
Country: United States M&A 27 of 57
Year: 2008 M&A 6 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-06-13 Achilles

Abingdon, United Kingdom

Achilles is a partner of choice for supply chain risk and performance management. Achilles collects and validates supplier data and mitigates risks globally. This data-driven insight builds more secure, sustainable, better performing supply chains. Achilles was founded in 1990 and is headquartered in Abingdon, United Kingdom.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-07-15 AdvancePath Academics

Williamsburg, Virginia, United States

AdvancePath Academics, Inc. is a provider of alternative education solutions for out-of-school youth and those students who are disengaged or at risk of dropping out of high school. The company creates innovative partnerships with districts and high schools to operate in-school Academies that provide high-quality education services to recover, educate, and graduate out-of-school youth and those students at risk of not earning their high school diplomas.

Buy -
Investor

Paladin Capital Group

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 2001
PE ASSETS 1.5B USD
Size Large
Type Sector Focused
DESCRIPTION

Paladin Capital Group is a growth capital firm focused on early and expansion stage businesses related to homeland security, defense, and business continuity. Specific areas of interest include identity management, antimicrobial solutions, mesh networks, IT services, data storage, business process software, network management software and detection, biometrics, and protective equipment. Paladin Capital Group was formed in 2001 and is headquartered in Washington DC.


DEAL STATS #
Overall 31 of 62
Sector: Software M&A 9 of 16
Type: Venture M&A Deals 30 of 58
State: Illinois M&A 2 of 2
Country: United States M&A 31 of 55
Year: 2008 M&A 4 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-06-01 QuantaLife

Pleasanton, California, United States

QuantaLife, Inc. is a life science company that manufactures and markets products based on their proprietary nucleic acid testing method.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-09-08 CounterStorm

New York, New York, United States

CounterStorm, Inc. is a network security company that provides immediate defense against known, zero-day, and targeted attacks. Zero-day attacks exploit software vulnerabilities during the period before fixes are readily available. Targeted attacks are aimed at specific industries or companies, with a level of customization that makes them almost impossible to detect with traditional security products.

Sell -
Investor

Dunrath Capital

Western Springs, Illinois, United States

Investor Investor Investor


Category Private Equity Firm
Founded 2002
Size Small
Type Sector Focused
DESCRIPTION

Dunrath Capital, Inc. is a 'research-based' private equity and strategic advisory firm. Dunrath's current area of interest is early and growth-stage investments in companies delivering infrastructure surety products and services. Dunrath invests in promising candidates across all stages development, with a particular emphasis in growth equity situations. Dunrath generally pursues companies located in the United States. Dunrath Capital is based in Chicago, Illinois.


DEAL STATS #
Overall 9 of 9
Sector: Software M&A 4 of 4
Type: Venture M&A Deals 7 of 7
State: Illinois M&A 2 of 2
Country: United States M&A 9 of 9
Year: 2008 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-01-20 SeQual Technologies

Ball Ground, Georgia, United States

SeQual Technologies, founded in 1991, is a market-driven, technology-based company with the mission to develop, manufacture and market unique products for medical, military, industrial and commercial applications that utilize the Company’s proprietary pressure swing adsorption (PSA) technology for air separation. It provides oxygen concentrators based on its unique and patented air separation technology.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-02-03 Initiate Systems

Chicago, Illinois, United States

Initiate Systems is a provider of master data management (MDM) software, which enables organizations to strategically leverage and share critical data assets by delivering a comprehensive, secure single view of citizens to government.

Sell -