Growth Capital • Information Technology

Vestar Capital Partners, Park Avenue Equity Partners and BlackRock Capital Investment Invest In DynaVox Systems

On May 1, 2004, private equity firm Vestar Capital Partners, private equity firm Park Avenue Equity Partners and business development company BlackRock Capital Investment invested in information technology company DynaVox Systems

Investment Context
  • This is Vestar Capital Partners’ 1st, Park Avenue Equity Partners’ 1st and BlackRock Capital Investment’s 1st transaction in the Information Technology sector.
  • This is Vestar Capital Partners’ 38th, Park Avenue Equity Partners’ 6th and BlackRock Capital Investment’s 2nd transaction in the United States.
  • This is Vestar Capital Partners’ 3rd, Park Avenue Equity Partners’ 2nd and BlackRock Capital Investment’s 1st transaction in Pennsylvania.
Investment Fate
  • DynaVox Systems went public in 2010.
  • DynaVox Systems was sold to a strategic buyer in 2014.

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Investment Summary

Date May 1, 2004
Target DynaVox Systems
Sector Information Technology
Investor(s) Vestar Capital Partners
Park Avenue Equity Partners
BlackRock Capital Investment
Deal Type Growth Capital

Target Company

DynaVox Systems

Pittsburgh, Pennsylvania, United States
DynaVox Systems LLC pioneers speech communication technology, giving an opportunity for a better life to the millions of adults and children around the world challenged by significant speech, language and learning disabilities caused by Amyotrophic Lateral Sclerosis (ALS, or Lou Gehrig's Disease), stroke, traumatic brain injury, cerebral palsy, Parkinson's Disease, autism and mental retardation.
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Investors Overview 3

Investor

Vestar Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1988
PE ASSETS 11.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Vestar Capital Partners is a private equity firm that targets management buyouts and growth capital investments across North America and Europe in the consumer, business services, and healthcare sectors. The Firm looks to invest $50 to $150 million in transactions valued up to $1 billion. Specific areas of interest include food, apparel, household goods, retail, consumer services, industrial services, information services, manufacturing, distribution, transportation, financial services, media/communications, digital health media, and medical technology. Vestar Capital Partners was formed in 1988 and is based in New York City.


Deal Context for Investor #
Overall 44 of 86
Sector: Information Technology 1 of 1
Type: Growth Capital 7 of 14
State: Pennsylvania 3 of 5
Country: United States 38 of 70
Year: 2004 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-04-01 Aearo Technologies

Indianapolis, Indiana, United States

Aearo is a global leader in the hearing, eye, face, head and respiratory protection segments of the global personal protection equipment market. Aearo manufactures and sells hearing protection devices, communication headsets, prescription and non-prescription safety eyewear, face shields, reusable and disposable respirators, fall protection equipment, hard hats and first aid kits in more than 70 countries.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-06-01 Insight Communications Co.

Belvidere, Illinois, United States

Insight Communications Company, Inc. is the ninth largest cable company in the United States, serving approximately 1.3 million basic video customers in the four contiguous Midwestern states of Illinois, Indiana, Kentucky and Ohio.

Sell -
Investor

Park Avenue Equity Partners

New York, New York, United States

Category Private Equity Firm
Founded 1997
PE ASSETS 340M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Park Avenue Equity Partners is a private equity firm that seeks investments in North American middle-market companies operating in basic industries. Areas of interest include construction, solid waste, transportation, recycling, healthcare and financial services. Park Avenue looks to invest $50 million per transaction and has an investment horizon of five to seven years. Park Avenue Equity Partners was formed in 1999 and is based in New York City.


Deal Context for Investor #
Overall 6 of 10
Sector: Information Technology 1 of 1
Type: Growth Capital 1 of 1
State: Pennsylvania 2 of 4
Country: United States 6 of 10
Year: 2004 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-04-02 OPENFIELD Solutions

Raleigh, North Carolina, United States

OPENFIELD Solutions Inc. (formerly known as Systech Retail Systems) is a leading retail industry independent developer, integrator and supporter of best-in-class solutions for North American supermarket and general merchandise chains. The Company provides professional services, support and maintenance programs, and give retailers the flexibility to select solutions that best meet their individual business needs.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-09-01 Liberty Tire Recycling

Pittsburgh, Pennsylvania, United States

Liberty Tire Recycling is a provider of tire recycling services in North America. Liberty collects and recycles used tires for innovative, beneficial re-use. The recycled rubber produced by Liberty is used as crumb rubber and industrial feedstock for molded products; as tire-derived fuel for industrial kilns, mills, and power plants; and as rubber mulch for landscaping and playgrounds. The company maintains a network of processing plants and comprehensive, nationwide collection services. Liberty Tire Recycling was formed in 2002 and is based in Pittsburgh, Pennsylvania.

Buy -
Investor

BlackRock Capital Investment

New York, New York, United States

Investor Investor Investor Investor Investor


Category Business Development Company
Founded 2005
PE ASSETS 1.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

BlackRock Capital Investment is a publicly traded business development company (BDC) that provides middle-market companies with a variety of financing solutions. This includes senior and junior secured, unsecured and subordinated debt securities and loans, as well as equity. BlackRock Capital targets profitable companies with strong management and defensible market positions that may be underserved by traditional lending sources. The Firm looks to commit $10 to $50 million in businesses generating $10 to $50 million of EBITDA. BlackRock was formed in 2005 by BlackRock and Kelso & Company. The Firm has offices in New York City and Chicago.


Deal Context for Investor #
Overall 2 of 33
Sector: Information Technology 1 of 3
Type: Growth Capital 1 of 5
State: Pennsylvania 1 of 3
Country: United States 2 of 26
Year: 2004 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-12-10 Advanced Lighting Technologies

Glenwillow, Ohio, United States

Advanced Lighting Technologies is an innovator and manufacturer of energy-efficient lighting materials and finished products. ADLT provides innovative lighting solutions to the growing global movement to decrease energy consumption. Advanced Lighting Technologies was founded in 1995 and is based in Glenwillow, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-09-01 SVP Worldwide

Nashville, Tennessee, United States

SVP Worldwide is a consumer sewing machine company with market shares across all industry price points. SVP unites three of the industry's most widely recognized brands, Singer, Husqvarna Viking, and Pfaff, that successfully target distinct market segments. SVP Worldwide was formed in 1851 and is based in Nashville, Tennessee.

Buy -