Leader In Data Centre Management Software To Be Acquired by Novell, Inc.
TORONTO, Feb. 26 /CNW/ - Covington Group of Funds ("Covington") is
pleased to announce that Novell, Inc. has entered into a definitive agreement
to acquire Covington investee PlateSpin Ltd. (the "Company") for
USD$205 million (all cash transaction). The acquisition was announced by
Novell on Monday February 25, 2008 and is expected to close in Novell's second
fiscal quarter of 2008, subject to the satisfaction of closing conditions.
As one of the seed investors in the Company, and one of the largest
investors in PlateSpin, Covington has played a significant role in the growth
and success of PlateSpin. In less than five years since the Company's
inception, PlateSpin has emerged as a leader in the virtualization of the data
centre and has changed the way businesses throughout the world manage their
technology resources. Providing their clients with the flexibility and
efficiencies to improve service, lower costs has made PlateSpin one of
Canada's most notable emerging growth companies. The Company's products will
allow Novell to provide their clients with a deeper and more robust platform
to manage their virtual infrastructure systems and will act as a cornerstone
to the Novell enterprise Linux and IT management strategy.
With a significant equity investment in the Company, Covington has
secured a very strong return on its initial investment for its shareholders.
"We are extremely pleased with this transaction and what it means to our
shareholders," states Phil Reddon, Managing Director, Covington Capital Corp.
"PlateSpin's story is a testament to what can happen in the venture capital
marketplace when a company develops products to meet its customer's current
needs, as well anticipate future industry trends, to effectively deliver
reliable, cutting-edge solutions for the long-term. Covington's involvement in
PlateSpin clearly underscores the role a venture partner can play in providing
support for Canadian enterprises to become industry leaders at a global
level," adds Mr. Reddon.
"The ability of PlateSpin to realize its corporate vision is a direct
result of the right combination of the Company's capability to develop unique
software solutions and the strategic direction of investment partners such as
Covington. Our partners have provided both the financing and long-term
operational guidance that has ultimately resulted in what should be one of the
most notable Canadian technology related transactions of the year," notes
Stephen Pollack, founder and CEO PlateSpin Ltd.
PlateSpin is held within the Covington Strategic Capital Fund and
Covington Venture Fund Series I, II, & III, Covington Venture Fund - New
Millennium Series, as well as two of Covington's CSBIFs.
About PlateSpin Ltd.
PlateSpin provides a unified suite of solutions to help enterprises
adopt, manage and extend their use of server virtualization in the data
center. PlateSpin's patent-pending conversion and optimization technology
liberates software from hardware platforms, allowing servers to be streamed
over the enterprise network from any source to any destination. This freedom
of movement ensures the best fit between server resource supply and
application workload demands.
Global 2000 companies use PlateSpin solutions to lower costs and solve
today's most pressing data center initiatives such as server consolidation,
disaster recovery and hardware migration. PlateSpin was recently awarded the
2006 International Business Award for Best Company and the 2006 Virtualization
Technology of the Year Award (UK). The company ranked second on the 2007
Deloitte Technology Fast 50 ranking of the fastest-growing technology
companies in Canada and fifth on the eighth annual PROFIT HOT 50 for emerging
growth companies. For more information please visit www.platespin.com.
About Covington Group of Funds
Founded in 1995, Covington Group of Funds (www.covingtonfunds.com) is one
of Canada's largest and most experienced venture capital fund providers.
Covington Group of Funds manages over $450 million in venture capital assets
on behalf of institutional and retail investors. These funds invest in
small-and-medium businesses throughout many industry sectors. The Covington
Group of Funds, headquartered in Toronto, is an affiliate of Affiliated
Managers Group, Inc. AMG is an asset management company with equity
investments in a diverse group of boutique investment management firms. AMG's
strategy is to generate growth through the internal growth of its existing
Affiliates, as well as through investments in new Affiliates. AMG's innovative
transaction structure allows individual members of each Affiliate's management
team to retain or receive significant direct equity ownership in their firm
while maintaining operating autonomy. In addition, AMG provides centralized
assistance to its Affiliates in strategic matters, marketing, distribution,
product development and operations.
For further information:
For further information: Fiona Robertson, EVP Sales and Marketing,
Covington Group of Funds, (416) 365-9155, email@example.com