Vector Capital Portfolio Company ProcessClaims to be Acquired by CCC Information Services; Transaction Demonstrates Success of Vector's Strategy of Supporting the Growth of Established Technology Businesses.SAN FRANCISCO -- Vector Capital, a private equity boutique specializing in buyouts, spinouts and recapitalizations of established technology businesses, today announced a definitive agreement under which CCC CCC A very speculative grade assigned to a debt obligation by a rating agency. Such a rating indicates default or considerable doubt that interest will be paid or principal repaid. Also called Caa. Information Services See Information Systems. Inc. will acquire Vector portfolio company ProcessClaims, Inc. The acquisition is expected to close in the next few weeks, subject to customary closing conditions. The sale of ProcessClaims to CCC, terms of which were not disclosed, demonstrates the continued success of Vector's strategy of funding the growth of established technology businesses. Vector invested in ProcessClaims in June 2002. At that time, the company had already developed a powerful web-based solution for streamlining the claims process for the automotive insurance, collision repair, and related industries. Several of the world's largest insurance companies were ProcessClaims customers and had made long term commitments to use the ProcessClaims solution to gain greater control and insight into their interactions with the claims supply chain. "In 2002, during an exceedingly difficult time for technology companies to be raising money, Vector made a bet on the ProcessClaims management team and our proven technology for the automotive insurance industry," said Paul Farber, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ProcessClaims. "We were looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. a hands-on investor Hands-On Investor An investor who holds a large portion of a company's shares and takes an active management role. Notes: The majority shareholders are usually hands-on investors and have the a great influence on the company's management decisions. to take us to the next level, and Vector lived up to our expectations." ProcessClaims, headquartered in Manhattan Beach, California Manhattan Beach is a city located in southwestern Los Angeles County, California, USA. The population was 33,852 at the 2000 census. Of a rotating City Council of five members, Jim Aldinger is the current mayor. , is a premier provider of software connectivity and business process solutions designed to boost productivity, enhance customer service and deliver significant return on existing IT investments. ProcessClaims solutions enhance and extend an insurance organization's existing IT investment by automating communication and information flow between employees, partners and their extended community. In addition to funding the growth of established technology businesses, Vector also focuses on spinouts of non-core technology businesses from large corporate parents and take private transactions of public companies. On April 27, 2006, Vector announced the sale of LANDesk Group Ltd to Avocent Corporation for $416 million. LANDesk was spun out by Vector from Intel Corporation in 2002. On May 4, 2006, Vector announced the sale of Savi Technology, Inc. to Lockheed Martin, terms of which were not disclosed. Savi was spun out by Vector from Raytheon Company in 1999. Vector's take-private transactions include the buyout of Corel Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CREL CREL Circular Regional Externa de Lisboa ) in 2003 and Register.com in 2005. In April, 2006, Corel completed its IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. and returned to the public markets, and in May, 2006, Register.com announced the sale of its Corporate Services Division to Corporation Services Company. About Vector Capital Vector Capital is a private equity boutique specializing in spinouts, buyouts and recapitalizations of established technology businesses. Vector identifies and pursues these complex investments in both the public and private markets. Such opportunities are typically underserved by traditional buyout and venture capital firms Name Location Founding date Managing Partners/Directors Specialty Capital managed 5AM Ventures Menlo Park, CA; Waltham, MA 2002 John Diekman, PhD (managing partner), Scott Rocklage, PhD (managing partner), Andrew Schwab (managing partner) life sciences $200M [1] . Vector actively partners with management teams to devise and execute new financial and business strategies that materially improve the competitive standing of these businesses and enhance their value for employees, customers and shareholders. Among Vector's portfolio companies are ProcessClaims, Savi Technology, LANDesk Software, Register.com and Corel Corporation (NASDAQ:CREL). For more information, visit www.vectorcapital.com. |
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