Seismic Micro-Technology Announces Strategic Investment from JMI Equity and Technology Crossover Ventures
SMT Receives Investment to Recapitalize the Company and Focus on International Business Expansion and Product Development
Houston, TX – May 30, 2007 – Seismic Micro-Technology, Inc. (SMT) also known as The KINGDOM Company™, the global industry leader for Windows-based geophysical and geological interpretation software, announced today that Technology Crossover Ventures (TCV) and JMI Equity (JMI) have made a strategic investment to recapitalize the company. The investment marks the first institutional round of funding received to date, which SMT will use to enhance product development and expand its international operations. The Smith family will retain a substantial ownership position in the Company. Terms of the transaction were not disclosed.
“We are extremely excited to partner with these two firms,” said Tom Smith, SMT’s founder and CEO. “As the software needs of the upstream oil exploration and production industry evolve, we are committed to retaining our leadership position. TCV and JMI are experienced growth investors who understand our business and will help build on our legacy of success. This investment allows us to accelerate our international growth strategy and to further focus efforts where it matters most: building and developing the industry’s most easy-to-use, innovative and powerful E&P software products. What won’t change is our industry-leading commitment to customer support.”
The strategic investment signals great confidence in SMT’s market leadership and ability to differentiate its integrated platform of geophysical and geological interpretation software products. SMT’s innovative technology tools consistently help propel the upstream exploration and production (E&P) industries forward. Solid modeling and reservoir simulation technologies were recently added to the suite of applications and are now being integrated with the KINGDOM software, providing Seismic Through Simulation™ capability.
“The industry vision and foresight demonstrated by Tom Smith and the SMT management team has positioned the company to address the tremendous market growth opportunities that exist in the E&P industries,” said Jake Reynolds, General Partner of TCV. “We are excited by this strategic partnership as the market continues to offer significant opportunities for innovative, best-in-class technology with world class functionality.”
“SMT has built a remarkable franchise in the seismic software market,” said David Yuan, Vice President of TCV. “We look forward to investing in and continuing that legacy.”
“We believe SMT is uniquely positioned for growth on account of its strong leadership team, reputation for world-class technical support, customer-centric culture and compelling and attractively priced software products,” added Bob Smith, General Partner of JMI. “We look forward to applying our software industry expertise to help Tom and his team expand SMT’s geographic presence and product offering.”
As part of the investment, Reynolds, Smith and Yuan will join the SMT Board of Directors.
SMT was advised by investment banking firm Brown Brothers Harriman & Co, and law firms Thompson & Knight, LLP and Jensen & Guzman, LLP. TCV was advised by the law firm of Weil, Gotshal & Manges, LLP and JMI was advised by Goodwin Procter, LLP.
About SMT
Seismic Micro-Technology, Inc. (SMT) is the global industry leader for Windows based seismic and geological interpretation software. Since 1984, SMT has offered geoscience software technology to the upstream exploration and production (E&P) industry. SMT is committed to providing software with broad functionality that is logical to learn and to use, is truly integrated, and is flexible in its operation. SMT was the first company to develop geoscience interpretation tools for Windows NT and continues to lead the industry in PC-based exploration and reservoir management software. The company’s software is widely accepted by geologists, geophysicists and reservoir engineers in over 75 countries. SMT has offices in Houston, Singapore, Croydon (UK) and Leoben (Austria). For additional information, visit www.seismicmicro.com.
About TCV
Technology Crossover Ventures (TCV), founded in 1995, is a leading provider of growth capital to technology companies, providing funds to later-stage private and public companies. With $4.7 billion in capital under management, TCV has made growth equity and recapitalization investments in over 150 companies leading to 43 initial public offerings and more than 30 strategic sales or mergers. TCV employs a crossover investment model, which combines venture capital with public market investing and enables TCV to continue to invest in its portfolio companies at the IPO and beyond. Representative investments include Altiris, eHarmony, Expedia, Global360, InPhonic, Liquidnet, Netflix, RealNetworks, Redback Networks, Solarc, Solect Technology, Webroot, and Xylan. TCV has ten partners and is headquartered in Palo Alto, California. For more information about TCV, visit www.tcv.com.
About JMI Equity
JMI Equity, based in Baltimore and San Diego, is a private equity firm exclusively focused on providing growth capital to software and services companies. Founded in 1992, JMI has invested in more than 80 companies throughout North America and has approximately $700 million of capital under management. In addition to providing the first institutional capital to self-funded companies, JMI also invests in selected recapitalization and management buyout financings. Representative investments include Blackbaud, Inc., DoubleClick, Inc., Jackson Hewitt, Inc., Mission Critical Software, Inc. (acquired by NetIQ, Inc), NEON Systems, Inc. (acquired by Progress Software Corporation), Transaction Systems Architects, Inc and Unica Corporation. For more information on JMI Equity, visit www.jmiequity.com.
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Media Contacts:
SMT
Jin Pan
Seismic Micro-Technology
(713) 464-6188
jpan@seismicmicro.com
TCV
Jessie Wong
Blanc & Otus Public Relations
(415) 856-5147
jwong@blancandotus.com
JMI Equity
Chuck Dohrenwend
The Abernathy MacGregor Group
(212) 371.5999
cod@abmac.com
