CapitalStream Announces the Strategic Acquisition of WiredCapital and Closes $10 million in Equity Financing
The acquisition is expected to result in increased financial strength, numerous operating efficiencies, and improved customer service, benefiting current customers and the Financial Services Industry
Thursday, October 10, 2002
SEATTLE, WA - CapitalStream (www.CapitalStream.com), a Seattle-based provider of business and commercial credit automation technology for the Financial Services Industry, today announced that it has acquired WiredCapital, a provider of enterprise automation software solutions for the Commercial Finance Industry, based in Orange County, California. The combined companies will continue operating under the CapitalStream name. Along with the acquisition, CapitalStream has raised an additional $10 million total in equity financing.
"This acquisition brings together the two best teams and the two best product lines in this industry," said Jeff Dirks, president and COO of CapitalStream. "Both companies have successfully built business and credit automation solutions for the Financial Services Industry, and our combined companies will bring together the skills, financial resources, industry expertise, and product offerings of two industry leaders to provide a "one stop shop" offering banks and finance companies more choice and greater flexibility through a broader range of products and services."
This transaction provides significant benefits to CapitalStream, WiredCapital, and their respective customer bases. Both the CapitalStream and WiredCapital product lines will continue to be available to current and future customers to offer a choice in deployment. CapitalStream will continue to offer FinanceCenter, the leading business and commercial credit automation service, as a hosted ASP solution while WiredFinance from WiredCapital will continue to provide an enterprise software solution that can be installed at customer sites behind their firewalls.
"With 70% of the financial industry planning to implement front office automation solutions in the next two years according to our recent market research report, there is an enormous demand for our products and services, but the industry is still waiting for a leader to emerge from the many different solution providers," said Kevin Riegelsberger, WiredCapital's CEO. "Our two highly complementary organizations, combined with the incredible support of our investors, bring together the operational and financial strength that make CapitalStream the de facto industry leader and gives customers the confidence that we can meet their needs today and in the future."
CapitalStream will continue to conduct business from its Seattle office. As a result of the acquisition CapitalStream will receive an additional $10 million of equity funding from its current investors: FTVentures, Banc of America, Polaris Venture Partners, Voyager Capital, Merrill Lynch KECALP, Babcock & Brown, and The Benaroya Company. Also joining the investment round is Mobius Venture Capital, WiredCapital's venture capital partner. Mobius will take a seat on the CapitalStream board of directors along with CapitalStream's current board members.
Seattle-based CapitalStream delivers business and commercial credit automation solutions for the Financial Services Industry. CapitalStream's FinanceCenter provides tools to better manage credit risk, reduce costs, and attract new business by automating manual processes for leases, loans, lines and cards. CapitalStream, an established industry leader, has helped hundreds of financial organizations increase their competitiveness, customer service, and profitability. For more information visit www.CapitalStream.com.
WiredCapital, based in Aliso Viejo, California, develops enterprise software solutions that enable commercial banks and finance companies to transform paper-based, stand-alone operations into integrated, streamlined finance supply chains. WiredFinance, WiredCapital's flagship software suite, enables seamless and paperless collaboration between customers, partners, and internal operations to rapidly originate loans, leases and other commercial finance instruments. WiredCapital integrates disparate systems, processes, and organizations to provide a single platform with a complete view of the customer relationship enabling financial institutions to be more responsive, efficient and competitive. For more information visit www.wiredcapital.com.
Founded in 1998, FTVentures was the first venture capital firm in the U.S. to primarily invest in technologies that benefit the financial services industry. FTVentures now has more than $623 million in total capital under management and remains the primary investment firm for technology companies that develop products and services applicable to financial services. It invests primarily in mid-to-late stage private companies with developed technologies in three key areas: software and infrastructure solutions providers, electronic commerce enablers and payment sector technologies.
FTVentures-backed companies include 7-24 Solutions, Financial Engines, Corillian, Managed Objects, Caplin Systems, Xign, e-Security, PAYTRUST, CapitalStream, E-LOAN, Synchrologic, ValuBond Securities, ValiCert, CrossLogix, and ClearCommerce. FTVentures investors are 39 of the world's leading financial institutions and include AIG, Bank of America Corporation, BNP Paribas, Charles Schwab, Credit Suisse Group, Deutsche Bank, Development Bank of Singapore (DBS), GE Capital, HSBC Holdings, Key Principal Partners, National City Corporation, Skandinaviska Enskilda Banken (SEB), Standard Chartered Bank, US Bancorp and Wells Fargo.
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