Toronto, March 17, 2004. VenGrowth Capital Partners (“VenGrowth”), a leading private equity firm with over $1 billion in assets under management, today announced investments totalling $6 million in two private companies – Trigence Corp. (“Trigence”) and Opalis Software Inc. (“Opalis”). The companies received funding from The VenGrowth II Investment Fund Inc. (“VenGrowth II”) – Canada’s largest labour sponsored investment fund (“LSIF”) with net assets of $505.6 million and over 100,000 investors as of February 29, 2004. The deals are further evidence of VenGrowth’s active investment approach in an attractively valued private company environment.
Trigence and Opalis are both focused on the growing corporate demand for computing solutions that offer greater flexibility at lower costs. Their products facilitate “on-demand” computing – a model that allows corporate users to access computer resources on an as-needed basis. On-demand computing is particularly appealing to companies with large IT operations because it can turn fixed costs into variable costs and eliminate underutilized computing environments. VenGrowth II invested $3.6 million in Opalis and $2.4 million in Trigence.
Trigence – building software to better manage critical applications
Ottawa-based Trigence specializes in building software products to more efficiently and effectively manage server-based UNIX and LINUX applications. The company’s typical customer runs different applications on numerous machines and servers. Trigence isolates applications from the underlying operating systems by placing them in secure software containers that can easily be transferred between servers and data centres as required - allowing companies to meet service level and availability commitments while reducing costs associated with labour and new hardware. This type of product is particularly attractive to large IT departments managing mission critical applications such as those in banks and financial institutions.
“VenGrowth’s financing will provide a boost to the development and distribution of our technology and enable us to capitalize on the growth of on-demand computing,” said Chuck Colford, CEO and co-founder of Trigence. “We welcome the experience and expertise that VenGrowth brings."
Opalis – simplifying IT operations for companies worldwide
Toronto-based Opalis has built a strong reputation in developing and delivering multi-platform automation software to data centre customers worldwide. As companies become more reliant on an increasingly complex web of different application, network and system infrastructure requirements, Opalis has built software that cuts through the maze. Its products integrate independently designed management applications – reducing operational costs and increasing the performance and productivity of IT departments. Opalis’ client base includes world-class companies such as Toyota, Nokia, Xerox, Kawasaki and Chrysler to name a few.
“This important investment from VenGrowth will enable us to solidify our position as the leading supplier of automation software and accelerate the development of our next generation of products,” said Scott Broder, President and CEO of Opalis. “VenGrowth brings extensive experience and sector specific expertise to the table that will support our growth plans."
“As the corporate world moves steadily towards on-demand computing, certain pieces of the puzzle need to be in place to ensure that the shift happens smoothly. Both Trigence and Opalis are playing significant roles in making sure that on-demand computing offers huge benefits to corporate users,” said Peter Carrescia, General Partner, VenGrowth. “These investments are excellent examples of the type of innovative companies that we target on behalf of our shareholders.”
About VenGrowth Capital Partners
With over $1 billion in assets under management, VenGrowth is Canada’s largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth’s accomplished team of seasoned private equity managers has invested over $1 billion in 169 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 160,000 individual investors as well as leading pension funds, insurance companies and family foundations. Portfolio companies benefit from VenGrowth’s substantial experience, resources, and hands-on investment style. VenGrowth is 100% independently owned by employees that are dedicated to generating superior returns for shareholders in its funds. VenGrowth’s offices are located in Toronto (Corporate Headquarters) and Ottawa. VenGrowth Capital Partners refers to VenGrowth Capital Partners Inc. and its affiliates. For more information, please visit www.vengrowth.com.
About VenGrowth II Fund
The VenGrowth II Investment Fund Inc. (“VenGrowth II”), is a broadly diversified, core venture capital fund focused on innovative growth industries for above average long-term return potential. Launched in 2000, VenGrowth II is Canada’s largest national labour sponsored investment fund (LSIF) with over 100,000 existing investors. The Fund’s portfolio is diversified across a broad range of predominantly later-stage companies and industry sectors spanning Internet infrastructure, enterprise software, communications, semiconductors, life sciences, traditional industries and special growth opportunities. This diversified approach is designed to offer investors the combined benefits of high return potential and lower risk. The Fund is managed by a team of specialized VenGrowth professionals with extensive operational and industry experience. The Fund also leverages the expertise of an external advisory board including high profile members of US and Canadian business communities. In addition, the professionally managed Fund offers investors long-term performance potential, 100% RRSP-eligibility and, through its LSIF structure, eligibility for substantial tax credits. The Fund had net assets of $505.6 million as of February 29, 2004.
About Trigence
Trigence’s mission is to enable on-demand computing by making any software application available at all times, from anywhere, to any user using any device by separating and isolating the application from any reliance on the operating system or hardware platform. Flagship product Trigence AE isolates applications from the underlying operating systems by placing them in secure software containers that can be centrally managed as discrete resources independent of the physical infrastructure. As a result, customers can easily discover, provision, redeploy, scale and move multiple UNIX and LINUX applications across servers and data centres as needed automatically. The right applications can now always be available on demand 24/7 when users need it while also reducing the need for operating systems and new hardware. Trigence AE’s bottom line: Guaranteed application availability with lower costs.
About Opalis
Opalis Software is a privately held international software company, headquartered in Toronto Canada. Founded in 1998, Opalis has been dedicated to delivering solutions that automate IT operations. The flagship product, OpalisRobot, is an automation software solution for the data center. OpalisRobot provides an object-oriented, event-driven, workflow environment. It reduces operational costs and increases the
performance and productivity by integrating independently designed management applications, with user expertise and data center procedures. Opalis' innovative automation solutions are promoted through international marketing initiatives and alliances with industry leaders. For more information on Opalis, visit: www.opalis.com.
For further information:
Ed Dermit,
Vice President, Marketing
VenGrowth Capital Partners Inc.,
(416) 967-2392
ed@vengrowth.com
