LAWRENCEVILLE, NJ, December 13, 2007 -- Edison Venture Fund announces a $5 million investment for Inmagic, headquartered in Woburn, MA. Edison is the sole institutional investor. The proceeds will be used to expand product development, support, marketing and sales plus provide shareholder liquidity.
More than 5,000 organizations around the world use Inmagic's Web-based software to catalog, search, retrieve and publish a wide range of content. Corporate, government and non-profit customers tap the value of intellectual and digital assets. Inmagic facilitates collaboration and social interactions for communities both within and outside the organization.
Joe Allegra, Edison Venture Fund General Partner, will serve on the Board of Directors along with Edison Director Network Member Tony Florence, EVP of Sales of VFA. Tom Vander Schaaff, Vice President, and Joy Whitney, Research Analyst, conducted Edison's due diligence.
"We are excited to partner with Edison Venture," stated Paul Puzzanghera, Inmagic's President and CEO. "Edison's experience accelerating growth of their portfolio companies will be very valuable as we build on our strong foundation in the library market."
"Customers raved about the performance and flexibility of Inmagic's products," commented Tom Vander Schaaff. "Inmagic has a proven track record and deep domain expertise," added Joe Allegra. "Their new technology, along with a strong management team, positions the company to capitalize on emerging trends in knowledge management and socialization of content and research assets."
Edison has invested in 16 New England-based companies including BlueCod, Cambridgesoft, Maptuit, PlumChoice, Sonicbids, Tangoe and VFA. Successful exits include EIS, Marcam, MathSoft, Netegrity and ReTec.
About Edison Venture Fund
Established in 1986, Edison partners with entrepreneurs, service providers and other financing sources to build successful companies. Edison provides capital and value-added services to expansion stage ($5 to 20 million revenue), information technology businesses. Initial investments range from $4 to 7 million. Edison typically serves as a sole or lead investor in financings up to $10 million. In addition to providing expansion capital, Edison funds management buyouts, recapitalizations, spinouts and secondary stock purchases.
Edison's investment professionals are based in Lawrenceville, NJ, New York, NY, West Chester, PA, and McLean, VA. Industry specialties include application software, communications, financial technology, interactive marketing, healthcare & pharmaceutical IT. Edison's successes include Axent, Best Software, Dendrite, E-Transport, Gain Capital, Liberty Tax, Princeton Financial, Visual Networks, Virtual Edge, Vocus and many other information technology leaders, which have a combined market value exceeding $5 billion. Edison currently has $550 million under management and is actively making new investments. www.edisonventure.com
Inmagic, Inc. is the global leader in Specialized Corporate Libraries and Research Asset Management. For more than twenty years, Inmagic has been a pioneer helping organizations tap the value of their information assets through such industry leading products as DB/Textworks and Inmagic Genie for special libraries and Inmagic Presto for enterprise research asset management. Inmagic solutions are known for their flexibility, ease of use and deployment, and minimal need for information technology support and can be integrated with and interoperate within an organization's overall information technology infrastructure. Today thousands of organizations across a wide range of industries around the globe rely on Inmagic software to actively manage a wide range of physical and virtual information assets. www.inmagic.com.
Edison Investment FAQ
What are you announcing?
We are announcing a strategic investment of five million dollars in Inmagic by Edison Venture Fund. This investment will be used by Inmagic to expand product development, marketing, support and global sales.
How will Inmagic customers benefit from this investment?
Inmagic customers will benefit from this investment in many ways.
- First, Inmagic will be able to accelerate hiring across all customer facing groups including our professional services, training and support organization.
- Second, this investment will enable us broaden the scope of our development effort and the pace in which we can get products to market.
- Third, we will be investing in expanding our marketing and sales organization which will help us grow our user franchise and enable us to offer more customer-centric programs such as user forums and customer advisory groups.
Will Inmagicís industry or market focus change? Is Inmagic still committed to the library market?
With more than 5000 organizations currently using our products in the special library, general knowledge management and research asset management marketplaces, Inmagic remains completely committed to being the leader in the markets we serve. We intend to grow from our base of expertise and competency that has served our company very well for more than 20 years. As our market changes and evolves with the advent of new technologies and trends in social computing, information and knowledge management we intend to stay abreast of the market and, with our customers, continue to be pioneers.
How will this investment effect Inmagic product development? Will Inmagic product priorities change?
This investment will enable us to expand our product development organization across all of our product lines including our traditional library products: DB Textworks and Genie, and our newest product for research asset management, Presto. Initially, our customers will benefit from our ability to offer enhancements to these products that are even more feature rich and generally reduce our development and release cycles.
Over time, our customers will see tighter integration between our products, as well as greater openness as we continue to embrace Microsoft .Net, service oriented architectures and Web 2.0 technology platforms.
Will anything change if I currently work with an Inmagic Partner?
No. With this investment we do not intend to change the way you are currently supported by Inmagic or our partners. We do, however, intend to improve support through the aforementioned investments. As we grow and the usage of our products expands, you can expect to see Inmagic adding to the services we provide, the range of products we offer and our network of partners around the world which will all serve to improve and enhance your experience and success using Inmagic products.
Why did Inmagic seek an outside investment?
Inmagic wants to be at the forefront of the coming convergence of library science, knowledge management, content publishing and social media. The once staid library space will become the "tip of the spear" in this coming revolution as content becomes more digital and knowledge management becomes more social. Call it Web 2.0, Library 2.0 or whatever you like; Inmagic will be at the vanguard. That means growing to confront the rapidly changing pace of technology and to provide the breadth of services needed to ease our collective transition into this new paradigm.
This investment will be important to Inmagic for three reasons:
- First, the investment will enable us to extend our leadership position in the special library and research asset management market through increased investment in research and development, support resources, infrastructure, customer-centric programs and greater investments in sales and marketing.
- Second, the investment will help us accelerate the pace in which we can bring new products to market and embrace emerging trends and technologies, particularly in areas such as software as a service (SaaS), Web 2.0 and social tools that help the 5000+ organizations we serve to better collaborate and build community around the content and knowledge domains they are already managing with our software.
- Third, along with the investment Inmagic will also benefit from the operational and company-building experience and perspective that Edison and our new board members bring to the company. Our goal at Inmagic is to take our company to even greater levels of success and growth. By focusing our company on growth we feel we can benefit all of our stakeholders including our shareholders, employees, business partners and, most importantly, our current and future customers who rely on Inmagic products and the services we provide.
Who is Edison Venture Fund?
Edison, headquartered in Lawrenceville, NJ invests in expansion stage information technology companies located in the Northeast region of the United States. They have invested nearly $1 billion dollars in 150 separate high technology companies. Edison seeks companies that have the capability to lead emerging markets and uses their extensive experience to help build successful companies. Edison has expertise in financial technology, pharmaceutical business solutions and communications. Their investments in application software companies span customer relationship management, human resources, engineering, manufacturing, logistics, supply chain, healthcare and education. Wireless data, ecommerce and Web applications are also Edison specialties.
And no, although it is a wonderful coincidence, Edison Ventures is not connected to our co-founder, the late Betty Eddison (Bettyís name is spelled with two dís). From our first meeting with Edison we felt good about them as a partner but it wasnít the name. Edison Venture Fund drew its name from New Jersey native Thomas Edison; Edisonís Managing Partner, John Martinson, is one of the largest private collectors of Edison memorabilia, which made it easy to convey the benefits of our technology in managing special collections. Click here to tour their extensive collection.
For more information on Edison please visit their Web site at (www.edisonventure.com).
Does this investment mean that Inmagic has been sold to Edison Venture Fund?
No. Edison is strictly a financial investor in Inmagic. Edison is the sole institutional investor in Inmagic and joins many private shareholders in the company. Edison Venture has no active role in the day to day management of Inmagic.
Will there be any changes to the Inmagic management team or the Inmagic staff?
No. Paul Puzzanghera will continue to serve as Inmagicís President and CEO. Long time Inmagic visionaries Karen Brothers and Phil Green remain in their current roles as do all of the rest of the Inmagic staff (see www.inmagic.com/company/mgmt.html). Joining the Inmagic Board of Directors will be Joe Allegra, Edison Venture Fund General Partner and Tony Florence, Executive Vice President of Sales of VFA, an Edison Member Network company. All of the Inmagic staff is highly energized by this opportunity and you should expect to see many new faces soon to augment our existing team.