Middleton, Wis., March 20, 2002 — Soft Switching Technologies Corp., a provider of power quality, power reliability, and power monitoring solutions, Wednesday announced that it has raised $17 million in private equity financing.
The round was led by GE Equity and GE Capital’s Structured Finance Group (SFG) and included new investors: Perseus Capital L.L.C.; Exelon Capital Partners, Inc.; OPG Ventures Inc., the venture capital subsidiary of Ontario Power Generation; and EdVenture Capital Corporation a subsidiary of DTE Energy Company; as well as existing investors: JPMorgan Partners, the private equity and venture capital arm of JPMorgan Chase & Co., LLC; The Beacon Group Energy Fund, a subsidiary of JP Morgan Partners and SoftSwitching’s largest shareholder; Advantage Capital Wisconsin Partners managed by Venture Investors LLC.; and The Thomas Family Trust.
In addition William W. Cavers, a Vice President of GE Capital Structured Finance Group, and John C. Fox, a Managing Director of Perseus Capital, L.L.C. have been appointed to SoftSwitching’s Board of Directors. Banc of America Securities LLC served as placement agent for the transaction.
SoftSwitching is a supplier of power quality and reliability solutions that deliver high ‘nines’ power to critical industrial manufacturing, commercial, and IT applications with a high cost of downtime. SoftSwitching’s Dynamic Sag Correctorâ„- (or DySC® – pronounced ‘disk’), winner of an R&D 100 Award for 2001, is one example of the range of products offered.
The DySC is rated from 250 VA, small enough to protect an industrial controller, to more than 3,000 kVA, sufficient to protect an entire small facility or an automotive or semiconductor production line. DySC customers include small manufacturers as well as Fortune 500 companies in the semiconductor, automotive, telecommunication, plastics, steel, and paper industries.
“SoftSwitching occupies a leadership position in a market that we believe is poised for strong growth – the delivery of high ‘nines’ power to commercial and industrial applications,” said William Cavers, Vice President of GE Capital Structured Finance Group. “GE Capital’s investment in SoftSwitching demonstrates our confidence in the company’s management and its strategy for realizing strong growth.”
“The financial backing of a premier group of investors including two GE Capital businesses, Perseus, key utility investors, and existing investors such as JP Morgan Partners, validates our products and our technology, and provides the resources needed to implement an aggressive sales and marketing strategy,” said Dr. Deepak Divan, Founder and Chief Executive Officer of SoftSwitching.
With technology roots stemming from the University of Wisconsin, Madison, Dr. Deepak Divan founded SoftSwitching in 1995. The company currently employs 54 professionals, is located in a new 33,000 square foot facility, and has developed a broad range of power products that demonstrate both technical and market leadership. SoftSwitching’s patent-protected and proprietary power electronics solutions provide a unique competitive advantage in emerging high-potential global markets including power quality, power reliability, and distributed resources. For more information on SoftSwitching, please visit www.softswitch.com.