WAYNE, Pa., April 22, 2015 /PRNewswire/ -- Safeguard
Scientifics, Inc. (NYSE: SFE) today announced that its partner
company, DriveFactor, Inc., was acquired by an undisclosed
strategic buyer for approximately $22
million. Safeguard expects to receive cash proceeds of
approximately $10 million,
representing an approximate 2x cash-on-cash return. Approximately
$1.1 million of such proceeds will be
held in escrow until April 2016.
"DriveFactor has built the leading independent telematics
platform for usage based insurance ("UBI")," said Philip D. Moyer,
Managing Director, Technology at Safeguard and Board Member at
DriveFactor. "DriveFactor has been at the epicenter of
connecting mobile, cloud, big data and telematics technologies into
the automotive insurance and automotive manufacturing industries,
and its acquisition is an important milestone for Steve McKay, Mac
Fraser and the rest of the DriveFactor team. The company's
vision and technology have been widely recognized as pioneering.
With its new parent company, we expect to see the DriveFactor team
transform the safety of driving, the quality of underwriting and
the overall consumer experience of insurance and driving."
Safeguard had deployed $4.5
million in DriveFactor since December
2011 and at the time of the acquisition had a 41% primary
ownership position. In just more than three years, DriveFactor
secured its position as a leader in UBI and grew its revenue
through white-label opportunities with global partners. The
DriveFactor platform accepts driving data from virtually any
vehicle telematics technology and is easily integrated with a
client's enterprise system. At the time of the acquisition,
DriveFactor's platform was live in market on three continents.
"For more than 60 years, Safeguard has fostered innovations that
have had a transformative impact on our personal and professional
lives," said Stephen T. Zarrilli, President and CEO at
Safeguard. "Our track record demonstrates our ability to build
value in our partner companies, making them attractive acquisition
targets for top-tier, industry leading companies. We congratulate
the team at DriveFactor on this tremendous accomplishment."
"We are grateful for the endless support we've received from the
entire team at Safeguard," said Steve McKay, Founder and CEO of
DriveFactor. "This is an exciting new chapter in DriveFactor's
history, and we couldn't have realized this milestone without our
financial backers and the commitment of our employees."
About Safeguard Scientifics
Safeguard Scientifics,
Inc. (NYSE:SFE) has a distinguished track record of fostering
innovation and building market leaders. For six decades, Safeguard
has been providing growth capital and operational support to
entrepreneurs across an evolving spectrum of industries. Today,
Safeguard is focused specifically on two sectors—healthcare and
technology. Specifically, Safeguard targets early- and growth-stage
companies in advertising technology, digital media, financial
technology, enterprise software, Internet of Things, devices,
diagnostics, digital health and healthcare IT. For more
information, please visit www.safeguard.com or Follow Us on Twitter
@safeguard.
Forward-looking Statements
Except for the
historical information and discussions contained herein, statements
contained in this release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Our forward-looking statements are subject to
risks and uncertainties. The risks and uncertainties that could
cause actual results to differ materially include, among others,
our ability to make good decisions about the deployment of capital,
the fact that our partner companies may vary from period to period,
our substantial capital requirements and absence of liquidity from
our partner company holdings, fluctuations in the market prices of
our publicly traded partner company holdings, competition, our
inability to obtain maximum value for our partner company holdings,
our ability to attract and retain qualified employees, market
valuations in sectors in which our partner companies operate, our
inability to control our partner companies, our need to manage our
assets to avoid registration under the Investment Company Act of
1940, and risks associated with our partner companies, including
the fact that most of our partner companies have a limited history
and a history of operating losses, face intense competition and may
never be profitable, the effect of economic conditions in the
business sectors in which Safeguard's partner companies operate,
and other uncertainties described in our filings with the
Securities and Exchange Commission. Many of these factors are
beyond the Company's ability to predict or control. As a result of
these and other factors, the Company's past financial performance
should not be relied on as an indication of future performance. The
Company does not assume any obligation to update any
forward-looking statements or other information contained in this
press release.
Logo - http://photos.prnewswire.com/prnh/20150422/200885LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/safeguard-scientifics-partner-company-drivefactor-acquired-300070657.html
SOURCE Safeguard Scientifics