What People Are Saying About Dolphin

"Dolphin was one of our earliest investors. They've proven to be trusted, long-term partners who have supported the growth of our business through ongoing financing and membership on our board." Bryan Boyd
CEO, TeraGo Inc.

Dolphin Equity Partners Realizes $93 Million on Gomez Sale

7.7X Exit Caps Banner Year, Validates Dolphin’s Commitment to Its Portfolio Companies’ Long-Term Growth Potential

NEW YORK – Dec. 4, 2009 – Dolphin Equity Partners recorded one of the largest single returns for limited partners among venture capital investors in 2009 and the largest sale of a privately held Software as a Service (SaaS) company with its fourth-quarter sale of longtime investment Gomez Inc. to Compuware Corporation (NASDAQ:CPWR), firm President Richard Brekka said at today’s annual limited partner meeting.

Compuware’s $295 cash acquisition of Gomez realized $93 million for Dolphin investors, a 770 percent return. Dolphin was Gomez’s largest shareholder and first invested in the company in 2000, when it saw an opportunity to build on Gomez’s nascent Web-performance monitoring assets and its then-pioneering delivery via the Software as a Service model.

“Dolphin is committed to looking for long-term investment opportunities that have huge potential payoffs, especially among SaaS technology providers,” Brekka said. “With our hands-on approach to helping find and support the right management teams, we’ve been able to create some truly innovative companies that have delivered real returns for our investors.”

The Gomez acquisition is the latest in a series of increasingly high-quality exits for Dolphin portfolio companies over the past few years, including Enpocket (sold to Nokia in 2007) and MaxPreps (sold to CBS in 2007).

Other Dolphin highlights for 2009:

  • Dolphin made strategic follow-on investments in portfolio companies Mobile Armor, SeaPass, Silver Carrot, AVST, Touch Commerce and Overtone.
  • TeraGo (TSX: TGO), one of Dolphin’s investments that went public in Canada in 2007, reported its fifth consecutive quarter of EBITDA improvement, maintaining the steady growth path that is a hallmark of Dolphin’s vision for its portfolio companies.
  • The firm was heavily involved in filling key senior-level management positions for two of its portfolio companies: Michael Menegay, CEO at Mobile Armor, and Rick Pontin, president and CEO at Airband.

Dolphin has a proven track record at getting involved, working hard and sticking with pioneering companies to bring them along, maintaining firm cost controls that both facilitate expansion while also maintaining capital on a go-forward basis, according to Partner Adam Greene.

“We’ve had three very strong returns in difficult times because of our patient and persistent approach,” added Partner Dennis O’Connell.

About Dolphin Equity Partners
Currently with more than $340 million in capital, Dolphin Equity Partners, L.P., invests in early and growth-stage technology-enabled companies positioned for continued growth and that present the potential to structurally transform enterprise and industry practices. As a trusted advisor and partner, Dolphin provides strategic and operational guidance to each of its portfolio companies, helping them build transformative and disruptive businesses for the long term. The relationships between Dolphin and its management teams are true partnerships, providing the support and expertise necessary to build successful and enduring companies. Dolphin invests in Software as a Service (SaaS), cloud computing, mobile-enabled technology, communication services, and new media businesses. Dolphin has been an investor in market-leading companies such as Gomez (acquired by Compuware), Enpocket (acquired by Nokia), MaxPreps (acquired by CBS), Vitalstream (acquired by Internap), TeraGo (TSX: TGO) and Ceragon (NASDAQ:CRNT). Learn more at: http://www.dolphinequity.com.

Contact:
Articulate Communications Inc.
Laura Grimmer
E-mail: lgrimmer@articulatepr.com
Phone: 212.255.0080, ext. 10

 

 

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