High Technology Solutions Secures First Round Equity Investments
19 January 2000
High Technology Solutions Secures First Round Equity Investments From GE Capital and Hambrecht & Quist
SAN DIEGO, Calif.--January 18, 2000--High Technology Solutions Secures $10 Million in Equity Financing
From GE Equity, a Division of GE Capital, and Hambrecht & Quist's
$334 Million Access Technology Partners, L.P. Fund.
High Technology Solutions, Inc. (HTS) announced today that it has secured $10 million in equity financing from GE Equity and technology-focused investment bank Hambrecht & Quist's Access Technology Partners fund (an affiliate of H&Q and Chase Capital Partners), a major milestone for HTS as the company executes its expansion in the business to business e-commerce arena.
"After being courted by several investors, we decided that GE Capital and H&Q offered HTS the most in terms of key strategic relationships, market leverage, and brand equity," said Allan Camaisa, CEO of HTS. "Both firms are looking at us from a strategic investment perspective. They see the potential to leverage our proprietary technologies across a number of industries where they hold key stakes, and where together, we can create tremendous value."
MACRO Systems, a wholly owned subsidiary of HTS, likely will utilize the lion's share of the proceeds. With cutting edge visualization, database, and e-commerce technologies that support both business to business and business to consumer applications, and using a suite of software and Internet products tailored for the high-growth automobile accessories market, MACRO is poised for absolute market leadership.
With the business to business e-commerce market skyrocketing (many analysts expect the market to explode, increasing from just under $50 million in 1998 to over $1 trillion in 2003), MACRO Systems' technology is being positioned to enhance that growth in the automotive market space.
MACRO already has a contract in place with a domestic automotive OEM to implement systems in dealerships and is in discussions to expand these offerings to include MACRO's Internet products. HTS has also been approached by a number of Internet auto portals that see the MACRO technology as a critical means of differentiation.
According to John Malfettone, a GE Capital managing director and company vice president, "MACRO has world class visualization technology that we believe fits squarely in the strategic framework for automotive OEMs to increase accessory product sales."
Andrew Kahn, a partner with Access Technology Partners, added, "The MACRO technology is unquestionably best in class. We anticipate widespread and immediate acceptance within both the brick and mortar and virtual market spaces."
The MACRO systems are based on unique, interactive visualization software that allows customers to select the exact make, model, color and version of a vehicle, add desired accessories from a database of thousands of options, and view the entire package, online, or while at a dealership.
HTS is currently being courted by a number of other high profile institutional investors. Summit Group Ltd., which served as financial advisor to HTS during the private placement, continues to support the firm as it evaluates potential investors. Additional capital infusions will be used to fuel growth in MACRO Systems as well as in the company's Interactive Media Division, which brings its own visualization software capabilities to both commercial and public sector markets.
"We are confident that our technology has applicability across a number of vertical markets where it can play a key role in making the concept of the 'virtual storefront' a reality," said Larry Prior, president and chief operating officer for HTS.
About High Technology Solutions, Inc.
HTS is a privately held information technology firm which focuses on leveraging its dynamic visualization software and innovative Internet Business Solutions across the fast growing automotive and public sector markets. With roots grounded in high growth Federal and State markets, and with FY98 revenues exceeding $32 million, HTS, through a series of strategic acquisitions and bold market tactics, has positioned itself at the forefront of the Internet firms that are revolutionizing industry today. High Technology Solutions has been consistently recognized for excellence. Listed in 1997, 1998 and again in 1999 on the Inc. magazine List of 500 Fastest Growing Companies in America, HTS was also awarded the prestigious Internet Software Award by Ernst & Young for the San Diego Region in 1998, and was selected as one of the 1999 Deloitte & Touche "Fast 50" for San Diego/Orange Counties. For more information about HTS, check out http://www.htshq.com.
About GE Equity
GE Equity, a subsidiary of GE Capital, is the private equity arm of GE. GE Capital, with assets of more than $300 billion, is a global, diversified financial services company with 28 specialized businesses. A wholly-owned subsidiary of General Electric Company, GE Capital, based in Stamford, Conn., provides equipment management, mid-market and specialized financing, specialty insurance and a variety of consumer services, such as car leasing, home mortgages and credit cards, to businesses and individuals around the world. GE is a diversified manufacturing, technology and services company with operations worldwide.
About Hambrecht & Quist
Since 1968, Hambrecht & Quist (www.hamquist.com) has been a leading force in the emergence and growth of technology investment banking and remains focused on four growth segments of the economy: technology, healthcare, services, and branded consumer companies. In the past four quarters, Hambrecht & Quist has closed financing transactions with an aggregate value of $13.5 billion, and advised on mergers and acquisitions with an aggregate value of $10.9 billion. Hambrecht & Quist is also an active investor in private equity transactions, primarily through its $334 million Access Technology Partners, L.P. fund. Since February 1999, Access Technology Partners has invested more than $150 million in 77 private companies.