-- Rand Capital Announces Sale of Software Company, GridApp Systems, Inc. and Clothing Designer, ADAM
December 14 2010 - 2:49PM
Rand Capital (Nasdaq:RAND) announced that two of its portfolio
companies have been acquired by strategic partners. BMC Software
(Nasdaq:BMC) recently acquired New York City database software
company GridApp Systems, Inc., and Kellwood Company, a leading
designer, manufacturer and marketer of premier fashion brands, has
acquired New York City based clothing designer, ADAM. Rand held
minority equity positions in both companies. Financial terms
of the transactions were not disclosed.
GridApp was founded in 2002 by Rob Gardos, an experienced
technology entrepreneur and former Chief Technology Officer and
General Manager of Register.com (RCOM), an Internet organization
specializing in domain name registration. Rand originally
invested into GridApp in 2008. Co-investors in the Company
included Ascend Venture Group, LLC, Advantage Capital Partners, and
Gefinor Ventures.
GridApp Clarity software simplifies and standardizes
deployments, patching, upgrades, migrations, configuration
management and other repetitive database administration tasks.
From small businesses to Fortune 500, GridApp Clarity is
running on thousands of systems worldwide. GridApp's
automation capabilities extend the BMC Cloud Lifecycle Management
solution, empowering a broader set of IT staff to request and
manage database resources in cloud environments.
ADAM was founded in 2004 by Adam Lippes, former worldwide
creative director of Oscar de la Renta. ADAM manufactures and
sells high-end contemporary sportswear lines for men and women at
luxury retailers. Rand originally invested in ADAM in 2006.
ADAM was acquired by Kellwood Company and this acquisition will
allow ADAM to focus on its core brand while benefiting from
Kellwood's distribution channels, its manufacturing and purchasing
capabilities as well as its extensive experience in the fashion
industry.
Daniel Penberthy, Rand's Executive Vice President stated, "While
GridApp and ADAM were involved in unrelated industries, they both
were led by entrepreneurs who share the vision, passion and
relentless energy required by entrepreneurs to start up a new small
business. We were pleased to be part of their growth and
success, and with over $10 million in deployable capital, we are
seeking out new investment opportunities."
Over the prior twelve month period, Rand has exited seven
portfolio companies, including Kionix, Inc., GridApp Systems, Inc.,
ADAM, Ramsco, Innov-X Systems, Inc., BioWorks and Golden Goal.
Allen F. Grum, President of Rand Capital stated: "We continue to
see strong M&A markets as established companies, who have cash,
are seeking young entrepreneurial companies, such as those in the
Rand portfolio, to add a unique product/service to their product
mix, in order to gain competitive market share in an otherwise
challenging economic environment. Once acquired, we feel these
companies will be in a better position to exploit the technologies
and ensure the businesses are properly capitalized. We are
hopeful for continued strong M&A activity".
ABOUT RAND CAPITAL
Rand Capital is a publicly held Business Development Company
(BDC), and its wholly owned subsidiary is licensed by the Small
Business Administration (SBA) as a Small Business Investment
Company (SBIC). Rand and its subsidiary provide capital and
managerial expertise to small and medium sized private companies
primarily located in the Northeast U.S. Rand is traded on the
NASDAQ under the symbol "RAND". Rand is headquartered in
Buffalo, NY. www.randcapital.com
CONTACT: Rand Capital Corporation
Investor Contact:
Daniel P. Penberthy, Executive Vice President
716.853.0802
dpenberthy@randcapital.com
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