New Company Well Positioned to Advance Its Market Leadership with Strong Financial Foundation and Support from JMI Equity
Foxboro, MA - December 5, 2005 - Axeda Corporation, the leading provider of device relationship management (DRM) software and services, today announced that it has completed its previously announced acquisition of the DRM business and related assets from ITA Holdings, Inc., formerly Axeda Systems, Inc. (OTC: XEDA.PK). Total consideration was $7 million plus the assumption of certain liabilities related to the DRM business. JMI Equity, a private equity firm focused on investments in the software and business services industries, provided the financing and working capital for the acquisition and ongoing operations of the new Axeda.
"Axeda is a leader in the growing global market for DRM solutions," said Brad Woloson, general partner, JMI Equity Fund. "The Company, under the strong leadership of Dale Calder and his team, has the attributes we look for in our investments - superior technology, a strong installed base and a clear strategy for sustained growth. With this transaction completed, Axeda enters our portfolio as a profitable company that will continue to operate to the benefit of its customers and employees."
The management team remains firmly committed to the success of the Company, its customers and its strategic partners. Dale Calder, president and chief executive officer, who founded the DRM market and business in 2000, will continue to lead the Company''s management team. Additional members of the management team include Jim Hansen, chief technology officer; Rich MacKeen, senior vice president of research and development and services; David Bennett, vice president of worldwide sales; and Brian Anderson, vice president of marketing.
"With this transaction, Axeda is now able to focus solely on enabling leading companies to enhance how they service, support and deliver value to their customers," said Mr. Calder. "We are very excited to have a partner with JMI''s proven track record, and are confident that together we will continue to shape the emerging DRM market."
Axeda pioneered the market for DRM and IDM (Intelligent Device Management) solutions. Its accomplishments include the first production system in 2001, over 12 patented or patent-pending technical innovations, the most deployed installed base in the industry, the industry''s largest scale deployment, and an over 70% market share. More than 50 leading organizations, including Abbott Laboratories, Applied Biosystems, Cardinal Health, EMC, Kodak Versamark, Network Appliance and Quantum, have chosen Axeda DRM for their remote service programs. Through service and support solutions powered by Axeda, these companies provide their customers with increased uptime, lowered total cost of ownership, while reducing support costs, improving customer satisfaction and increasing revenues.
Axeda enterprise software enables a new generation of high-value remote services that maximize the value of the products you sell. Customers benefit from increased uptime and a superior product experience, while manufacturers generate increased revenue and higher customer satisfaction ratings with reduced cost of service delivery.
Axeda solutions include condition monitoring, remote repair, patch management, pay-per-use billing, preventative maintenance, performance optimization and more. These solutions enable companies to grow revenue, reduce service costs, increase customer satisfaction, and manage risk. Leading organizations such as Abbott Laboratories, Cardinal Health, EMC, Kodak Versamark, and Quantum are using Axeda solutions today. For more information about our products, services, and customers visit: www.axeda.com.
JMI Equity, based in Baltimore and San Diego, is a private equity firm exclusively focused on investments in the software and business services industries. Founded in 1992, JMI has invested in over 60 companies throughout North America and has approximately $700 million of capital under management. JMI invests in growing businesses. The firm''s focus is on providing the first institutional capital to self-funded companies. JMI also invests in select recapitalization and management buyout financings. Representative investments include Blackbaud, Inc. (Nasdaq: BLKB), DoubleClick, Inc., Jackson Hewitt, Inc. (NYSE: JTX), NEON Systems, Inc. (Nasdaq: NEON), Transaction Systems Architects, Inc. (Nasdaq: TSAI) and Unica Corporation (Nasdaq: UNCA). For more information on JMI Equity, visit www.jmiequity.com.
Press Contacts:
Erin Nolan Smith
Director, Marketing Communications
Axeda Corporation
+1 (508)-718-6351
enolan@axeda.com
Chuck Dohrenwend
Vice President
The Abernathy MacGregor Group
+1 (212)-371-5999
cod@abmac.com
