JMI Invests in NetPro Computing, Inc.
JMI Equity and Kennet Venture Partners Buy Majority Stake in NetPro; Investment Endorses Strong Sales Execution and New Product Momentum
(Phoenix, AZ - 08.11.2004) NetPro Computing, Inc., a leading provider of distributed services management software, today announced that JMI Equity, Inc. and Kennet Venture Partners LLC have purchased the majority of shares outstanding in NetPro in a secondary share purchase from existing investors. The share purchase does yield a change of control of the company, as well as a new Board of Directors.
"This investment underscores NetPro’s past financial results and future growth potential and introduces critical industry expertise," said Kevin Hickey, president & CEO of NetPro. "In the first six months of this year, we have already well exceeded our 2003 annual revenue. This validates NetPro's positive growth trajectory and adds outstanding, industry specific leadership to our board. With the additional expertise brought by our investors and a product development schedule that will continue to bolster our market offerings, NetPro's customers and prospects will be the real winners."
NetPro has appointed Peter C. Arrowsmith, general partner at JMI Equity, Inc, Javier Rojas, managing director of Kennet Venture Partners, and Steve Whiteman, president & CEO of Intesource, to its board of directors. "Arrowsmith, Rojas and Whiteman are highly regarded in the venture capital community, and will make valuable contributions to our board of directors," Hickey said. Hickey, who will maintain his board status, worked with Whiteman for nearly a decade during his tenure at publicly held software firm, Viasoft.
There are clear synergies between NetPro and the two venture firms. JMI Equity was founded in 1992 by John J. Moores, the founder and former chairman of BMC Software, a leading provider of enterprise management software. Since its inception, JMI has invested in more than 60 high-growth companies in the enterprise software and information service markets and has several very successful systems management companies in its current and past portfolios. Likewise, Kennet invests in IT growth companies both in the US and Europe and will provide seasoned input as NetPro continues to ramp its business development and sales acceleration plans here and abroad.
"NetPro has tremendous potential, said Peter C. Arrowsmith, general partner at JMI Equity. The company's quarter-over-quarter revenue growth, coupled with its exceptional product vision and go-to-market strategy, positions it for accelerated growth over the next 18 months. We look forward to working with the NetPro management team to drive the company to the next level of growth and market expansion."
"NetPro has delivered best-of-breed directory management solutions for years. However, with its new product roadmap and senior management team, the Company is executing at another level. NetPro's products are delivering tremendous return on investment for customers, and they have an impressive sales pipeline that clearly demonstrates that the message is resonating with both new and existing customers," said Javier E. Rojas, managing director of Kennet Venture Partners. "We're eager to lend our expertise on the board and play a key role in the new NetPro."
About JMI Equity, Inc.
JMI Equity is a leading private equity firm focused on investing in high-growth companies in the enterprise software and business and information services markets. JMI invests in companies at all stages of development from start-up and expansion situations to management buyouts and recapitalizations. The firm has invested in more than 60 companies and has approximately $400 million in capital under management. Former and current portfolio companies include BindView Development, eBenX, META Group, Mission Critical Software, NEON Systems, Peregrine Systems and Transaction Systems Architects. JMI has offices in Baltimore, Maryland and San Diego, California. For more information, visit www.jmiequity.com
About Kennet Venture Partners LLC
Kennet Venture Partners is a leading transatlantic venture capital firm that invests in growth companies providing IT products and business services that leverage IT. Kennet provides expansion capital to firms that want to accelerate growth and build exceptional shareholder value in partnership with an experienced investor. The firm has approximately $300M in capital under management. Kennet Venture Partners acts as an advisor to Kennet I LP, a Jersey limited partnership and to Kennet II LP, a Guernsey limited partnership. Kennet Venture Partners is regulated by the FSA. For more information: www.kennet.com
About NetProNetPro sets the Gold Standard for distributed infrastructure management. We build decades of experience into every enterprise solution, ensuring that our customers can manage the security, compliance and health of their Windows, DNS, MIIS, and Exchange environments with total, unparalleled confidence. Our solutions enable organizations to improve security and policy compliance, increase access availability, prevent costly disruptions, and enhance management efficiencies. NetPro counts the U.S. Army, Volvo, and Coors Brewing among its many customers.
Contact:
Christine McDermott
NetPro Computing, Inc.
602.346.3639
christinem@netpro.com
