Fall 2006
Newsletter
NEW INVESTMENTS
RECENT EXITS
SSM NEWS
PORTFOLIO COMPANY NEWS
NEW INVESTMENTS
Handango Raises $60 Million
to Extend Leadership in Rapidly-Growing Smartphone Content Market
We are pleased to announce our recent investment in Handango,
Inc. Handango, the world’s leading provider of smartphone content, raised over $60 million to aggressively extend its
leadership position in the fast-growing smartphone content market. With these funds, the company plans to intensify its investment in the consumer
experience, transforming its business from the largest smartphone content aggregator to the world’s premier smartphone content retailer, both
online and directly from the device.
SSM was joined in this financing by a collection of successful venture
capital firms, including Institutional Venture Partners (IVP), Advanced Technology Ventures (ATV), Neo Carta, Pharos and Centerpoint.
To view the press release from this transaction, please visit http://www.ssmpartners.com/html/news_press/news/091206.htm.
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RECENT EXITS
ADP Acquires
Employease
The Employer Services Division of Automatic Data Processing, Inc.
(NYSE:ADP), announced it has acquired Employease(R), Inc. a leading provider of Web-based solutions and outsourcing options for HR and benefits
professionals. The acquisition follows a successful partnership between Employease and ADP(R) Major Accounts Services, part of ADP Employer Services,
and is expected to further expand ADP's presence within the mid-market to fulfill a growing demand for Software-as-a-Service (SaaS) solutions.
In October 2004, ADP Major Accounts Services and Employease entered into a
strategic partnership to provide medium-sized businesses with an integrated suite of Web-based, hosted payroll, human resources and benefit
administration service solutions. Since then, ADP has sold, implemented and serviced Employease Network solutions under the brand name, ADP
HR/Benefits Solutions.
"This acquisition will build on our combined strengths and business
momentum," said Vince Coppola, President, ADP Major Accounts Services. "Combining Employease's top-rated Web-based business solutions with ADP's
industry leading payroll, HR and benefit services enables our clients to address many of today's most critical business issues, such as rising
benefits costs, compliance and employee retention. We are excited to welcome Employease into the ADP family, and proactively meet the rapidly growing
demand for hosted, on-demand services."
"After our successful collaboration with ADP, we are confident this is the
right move for our company, our clients and our associates," said Phil Fauver, Chief Executive Officer, Employease. "ADP shares our commitment to
providing quality service and easy-to-use solutions that help employers reduce the administrative burdens of HR and Benefits Administration. ADP's
global presence and payroll expertise will surely enrich and expand core product features while broadening our reach in the HR/Benefits
space."
To view the press release from this transaction, please visit http://www.ssmpartners.com/html/news_press/news/100306.htm.
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SSM Completes 4 Successful
Liquidity Events in 2006
With the acquisition of Employease by
ADP (NYSE: ADP), SSM Partners has completed its fourth successful liquidity event in 2006. These liquidity events
include:
-
360Commerce acquired by Oracle (NASDAQ: ORCL)
-
Fuego acquired by BEA Systems (NASDAQ: BEAS)
-
Passport Health completes $70 million growth recapitalization
-
Employease acquired by ADP (NYSE: ADP)
In aggregate, these business were valued
at roughly half a billion dollars. We would like to congratulate our partners at 360Commerce, Fuego, Passport Health, and
Employease on their recent successes.
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SSM NEWS
Casey
West and Robert Covington Named Partners; Hunter
Witherington Named Vice President
We are pleased to announce the promotions of Robert Covington and Casey West
to Partner and Hunter Witherington to Vice President.
Robert joined SSM in 2002 and has eight years experience building high
growth businesses as both an entrepreneur and an investor. He specializes in early and expansion stage technology enabled
businesses. Robert’s investment responsibilities at SSM include Handango, Plan Express, and National Medical
Solutions. Prior to SSM, he founded Firstdoor in June of 1999 and served as CEO and Executive Vice President of Corporate
Development during its first three years of operation. Firstdoor delivers an Internet based information service to corporate human
resources departments. While at Firstdoor Robert grew the company to a 65 person organization, raised $18M of venture capital, and
assisted in the sale of the company to Enwisen Corporation in 2003.
Casey joined SSM in 2004 and has 10 years of experience in entrepreneurial
finance. He focuses on healthcare services, healthcare information technology, and business services companies.
Casey’s investment responsibilities at SSM include Senior Whole Health, Fibromyalgia and Fatigue Centers, and Passport Health
Communications. Prior to SSM, Casey spent five years with a southeastern-based private equity firm focused exclusively on
growth-stage healthcare and business services investments. He began his career at Donaldson, Lufkin & Jenrette, where he was a
member of the healthcare investment banking group. His transaction experience includes the purchase by DLJ Merchant Banking
Partners of Wilson Greatbatch Technologies, the leading provider of power sources for implantable cardiovascular devices.
Hunter joined SSM in 2004 and has over 4 years of experience in private
equity and investment banking. He focuses on business, consumer, and healthcare service companies. Hunter has
participated in SSM’s investments in Plan Express, Senior Whole Health, and Fibromyalgia & Fatigue Centers. Prior to SSM,
Hunter spent several years at Stephens Inc., where he worked on private placement, public offering, and M&A transactions across a variety of
industries. His transaction experience includes the $1 billion sale of Alltel Information Services to Fidelity National Financial,
Psychiatric Solutions’ $110 million stock offering, and Plug Power’s $58 million stock offering.
Managing Partner Jim Witherington commented, “Casey and Robert have
earned the right to be Partners at SSM. They are highly visible in the markets and sectors that they cover and have significantly
expanded the reach of the firm. Their depth of industry knowledge, experience, enthusiasm, and hard work are major resources to
SSM’s portfolio companies as we work to build large, high-growth companies. Hunter’s technical and analytical
expertise has enhanced all aspects of our business, and he is highly deserving of the promotion to Vice President. These
promotions signify our confidence in Casey, Robert, and Hunter and their ability to build on SSM’s position as one of the premier private
equity firms in this part of the country.”
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PORTFOLIO COMPANY NEWS
Leading Research Firm Names Servigistics “The Leader” in the Service Parts Optimization Market
Plan Express Announces Provider Agreement with K. Hovnanian Homes, Inc.
Connecture Selected as a Finalist in the 2006 eFusion Awards
Passport Health Receives Industry Award for Revenue Growth
Fibromyalgia & Fatigue Centers, Inc. Announces Jacob Teitelbaum, MD as New Medical Director
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