RADNOR, Pa., April 28, 2016 /PRNewswire/ -- Safeguard Scientifics, Inc. (NYSE: SFE) today announced first quarter 2016 financial results. Safeguard’s partner companies achieved significant developmental milestones.
“Safeguard continues to track steady progress toward our long-term strategic goal of deploying capital to support the development of our growing roster of partner companies while realizing aggregate cash-on-cash returns of at least 2x from a consistent pace of well-timed exit transactions to drive shareholder value,” said Stephen T. Zarrilli, President and CEO of Safeguard. “Our recent sale of Putney reinforces our confidence in and belief that our portfolio of partner companies is ripe with high-quality opportunities for future M&A and value creation events.”
Subsequent to the first quarter of 2016, Safeguard’s partner company, Putney, was acquired by Dechra Holdings US Inc., a subsidiary of Dechra Pharmaceuticals Plc (LON:DPH), for $200 million in cash. Safeguard received cash proceeds of $58.2 million, which represents an approximate 3.9x cash-on-cash return and 42% IRR. Safeguard had deployed $14.9 million in Putney since September 2011 and prior to the acquisition had a 28% primary ownership position.
AGGREGATE PARTNER COMPANY REVENUE
In light of the Putney sale, Safeguard updated aggregate partner company revenue guidance. For 2016, aggregate partner company revenue is now projected to be between $435 million and $450 million, which includes revenue for all partner companies in which Safeguard had an interest at January 1, 2016, except for Putney. Aggregate revenue for 2015, 2014 and 2013 was $420 million, $338 million and $275 million, respectively, for the same companies.
FIRST QUARTER 2016 FINANCIAL HIGHLIGHTS
- Deployed $23.4 million in follow-on funding to support growth of nine existing partner companies.
- Achieved the final $3.3 million performance milestone, related to the sale of ThingWorx, Inc. consummated in December 2013, bringing the total cash-on-cash return to 4.7x.
- Repurchased $5.4 million of common stock in open market transactions under a $25 million share repurchase authorization. Since the program’s renewed authorization in the third quarter of 2015, $10.4 million of common stock, or approximately 728,000 shares, have been repurchased through March 31, 2016.
For the three months ended March 31, 2016, Safeguard’s net loss was $15.5 million, or $0.76 per share, compared with a net loss of $14.6 million, or $0.70 per share, for the same quarter of 2015.
SELECT PARTNER COMPANY HIGHLIGHTS
Significant accomplishments by Safeguard’s partner companies during the first quarter 2016 include:
~ Product Launches / Regulatory Approvals ~
Apprenda announced that it is incorporating Kubernetes, Google’s open-source orchestration system for Docker containers, for part of its architecture and is joining the highly committed Kubernetes community.
Beyond launched Text2Hire campaigns, which provide recruiters with the opportunity to engage with job seekers through personalized text messages about quality job opportunities.
CloudMine launched its HIPAA-compliant Connected Health Cloud product, which allows users across the healthcare spectrum to aggregate and analyze disparate data to improve patient care.
Clutch Holdings deployed several enhancements to its proprietary customer-marketing platform, including an innovative event infrastructure and supporting application program interfaces (“APIs”), as well as an architectural upgrade for the platform’s mobile infrastructure.
Hoopla Software continues to expand its open data platform with new features including Google Sheets integration, an open data API, and enhanced Salesforce integration.
InfoBionic received 510(k) clearance from the U.S. Food and Drug Administration (“FDA”) for MoMe® Kardia, a wireless, remote monitoring system designed to aid physicians in their diagnosis of cardiac arrhythmias in patients with a demonstrated need for cardiac monitoring. InfoBionic expects to begin shipping the new generation MoMe® Kardia in the second quarter of 2016.
MediaMath launched Helix, a new proprietary data business unit that represents the investment in data as the fuel and exhaust of programmatic. Helix leverages global, pooled transactional data sets coupled with MediaMath’s vast data footprint and buying platform to evolve how marketers leverage data for programmatic marketing.
Medivo launched CareInsights Dx analytics solutions, which provide value to healthcare payers by leveraging clinical diagnostics to identify at-risk patients for care management programs, HEDIS/Star Initiatives and medical risk adjustment.
Propeller Health launched a ‘first-of-its-kind’ commercial partnership with Boehringer Ingelheim Pharmaceuticals, a global pharmaceutical company and leading provider of inhaled medications for serious respiratory diseases. This partnership aims to use digital health tools and services to help people living with chronic obstructive pulmonary disease (“COPD”) and asthma better manage their disease.
Syapse launched its Syapse Global Partner Program, which will leverage best-of-breed partners to enhance and accelerate the implementation of the Syapse Precision Medicine Platform at healthcare organizations globally. Under the program, Syapse will build an ecosystem of partners, including system integrators, EHR vendors, testing labs, specialty pharmacies and health plans, to further complement the capabilities of Syapse Precision Medicine Platform.
WebLinc launched its exclusive Solutions Partner Network to offer mid market retailers access to in-demand solutions and ecommerce expertise. Launching this network, WebLinc has designed a repeatable process to help the most innovative commerce agencies, developers, and strategists implement the WebLinc Commerce Platform. Demac Media, an award-winning commerce agency based in Toronto, is the first Solutions Partner Network member. In addition, WebLinc launched ecommerce websites for Tahari Arthur S. Levine, an affordable luxury brand focused on professional women; Marika.com and Zobha.com for FAM Brands, a family-owned and operated activewear manufacturer; and RachelRoy.com for Rachel Roy, an award-winning and privately-owned women’s clothing brand.
Zipnosis expanded its offerings with the launch of ZipTicket, a virtual boarding pass that gives patients access to in-clinic lab tests, part of Zipnosis’ focus to streamline healthcare delivery and improving patient experience through virtual care.
~ Major Customer Wins / Strategic Partnerships ~
AppFirst is teaming with FutureProof, a London-based technology consulting firm, to offer companies analytics that determine the suitability of applications to migrate and run in the cloud or on other strategic platforms and services. The partnership leverages AppFirst’s nano-surveillance technology that allows visibility of every process across a customer’s entire IT stack.
Apprenda signed a resale agreement with Cisco to integrate the Apprenda PaaS with Cisco Metapod and Cisco Application Centric Infrastructure (“ACI”). Apprenda’s integration with Cisco Metapod and Cisco ACI allows Apprenda to fully deliver on the hybrid needs of enterprise software development.
Aventura selected top ranked HealthCast as its Single Sign-On (“SSO”) partner. The combined offering brings to market a comprehensive, modular set of solutions that provide basic level desktop perimeter security and two-factor authentication with the ability to leverage SSO and contextual patient awareness for interoperability at the point-of-care.
Beyond added Advantage Solutions, Allstate, Maxim Healthcare, Six Flags and UPS to its customer roster.
CloudMine partnered with rapid mobile app development leader Alpha Software Corporation to scale secure, HIPAA-compliant mobile app development and deployment for healthcare and life science organizations.
Clutch Holdings signed new strategic enterprise clients including 1-800-Radiator, Astro Gaming, Country Outfitter, Goodwill, Samsonite and Skullcandy. Clutch also expanded its customer-marketing solutions to existing clients Harley-Davidson, Pandora Jewelry and True Religion. Clutch entered into strategic partnerships with NetSuite, a premier ecommerce solutions provider; Lyons Consulting Group, a leading ecommerce systems integrator; Retail Control Systems, a complete retail management software and hardware solution; and Vantiv, a leading payment processing and technology provider.
Good Start Genetics is collaborating with Helix, a consumer genomics company, to develop consumer applications to help couples better understand their reproductive health. In addition, Good Start Genetics established a national relationship with Aetna to serve as an in-network laboratory partner for a variety of its genetic tests. The agreement, effective June 1, 2016, brings Good Start Genetics’ number of in-network covered lives to over 100 million, arming Good Start Genetics with the national reach necessary to best inform and improve the health of millions.
Hoopla Software has signed 150 new customers since launching its latest platform, continuing robust revenue momentum during the first quarter of 2016.
MediaMath partnered with Adform, a global digital media advertising technology company. MediaMath TerminalOne users will gain access to publishers on the Adform system, profiting from increased programmatic supply globally alongside the buy and sell-side tools that Adform offers. In return MediaMath will provide Adform with global demand for its global programmatic supply. MediaMath’s training and educational arm, The New Marketing Institute, launched in Asian and Pacific Coasts (“APAC”) to arm companies and their staff with a greater understanding of technology, including programmatic trading. Lastly, MediaMath was the first demand-side platform (“DSP”) to partner with Integral Ad Science to leverage its performance matching technology to empower advertisers with the ability to target viewability thresholds for its video inventory.
Pneuron won a significant Transaction “Look-back” project with a Global Bank, supported by a major Audit firm, to improve the speed, consistency, and productivity of its Investigative staff. In addition, Pneuron developed, deployed and moved into global production, 60 complex business intelligence models in record time at a Top 10 global financial institution.
Propeller Health partnered with Aptar Pharma, a global drug delivery systems provider. Under the terms of the agreement, Propeller and Aptar will jointly develop the world’s first digital, connected metered dose inhaler with an integrated sensor and a novel electronic dose counter. The device is currently available for licensing and is expected to enter clinical studies later this year. Propeller Health also announced new commercial partnerships with Humana, whose employees are participating in the AIR Louisville program, and with AMC Health, which will use Propeller to power its care management programs for complex COPD patients.
Sonobi announced a key partnership with Omnicom Media Group’s Annalect Group to integrate Sonobi’s JetstreamTM platform into OMG’s premium ad technologies so organizations can pre-qualify and purchase audiences directly without financial intermediaries.
Syapse‘s Precision Medicine Platform was utilized by The American Society of Clinical Oncology (“ASCO”) to launch and enroll the first patients in the ASCO’s Targeted Agent and Profiling Utilization Registry (“TAPUR”) study. This groundbreaking clinical trial, which addresses the use of molecularly-targeted cancer drugs used for indications outside of those approved by the FDA, relies on Syapse to manage the study workflow and capture structured clinical data from participating hospital systems.
Trice Medical selected OpenClinica Enterprise, a SaaS that allows clinical research teams to be more efficient in the electronic capture and management of clinical data. Trice Medical selected OpenClinica Enterprise to help manage its clinical trials in large part because of the system’s ease of use and its ability to scale with the company’s needs.
WebLinc expanded its Partner Ensemble platform with the addition of ChannelAdvisor, a provider of cloud-based ecommerce solutions for retailers and manufacturers. This strategic partnership offers WebLinc clients a pre-built integration with ChannelAdvisor, enabling them to automatically push a single product data feed into the WebLinc Commerce Platform.
Zipnosis partnered with MultiCare Health System to launch its MultiCare eCare platform, an online diagnosis and treatment service for common health conditions.
~ Industry Awards ~
Bridgevine was named one of the ‘Top 40 Innovative Technology Companies in Georgia’ by the Technology Association of Georgia. TAG’s Top 40 Awards recognize Georgia-based technology companies for their innovation, financial impact, and their efforts at spreading awareness of Georgia’s technology initiatives throughout the U.S. and globally.
Clutch Holdings was honored as a Strong Performer in The Forrester Wave: Customer Loyalty Solutions For Midsize Organizations report. Clutch and its client Wizard World were also nominated for the Loyalty 360 CX Awards for premier loyalty program and top customer experience.
Hoopla Software was recently selected as a 2016 Gold Stevie Award winner for the category “Incentive Management Solution New”. The award recognized Hoopla’s success in building a platform that drives the performance of sales and service teams through an incentive-based platform that combines modern game mechanics, employee recognition, and motivational communication tools.
MediaMath earned recognition from major technology research firm, Gartner, in its Magic Quadrant for Digital Marketing Hubs, in which MediaMath was named a visionary. MediaMath was recognized as a leader for its scalable, reliable TerminalOne Marketing operating system and the open, extensible ecosystem of data, technology and media suppliers it enables.
Pneuron was recognized by SD Times as a Top Company to watch in 2016.
Syapse was recognized at the White House Precision Medicine Initiative Summit for its work with Intermountain Healthcare to implement and systematize precision medicine. This event, which included an address by President Barack Obama, showcased the achievements of pioneers in bringing precision medicine into clinical practice.
Transactis earned “Best Innovation in ACH” for its BillerIQ platform from the National Automated Clearinghouse Association and PYMNTS.com. The award is bestowed at Harvard University based on voting by payments industry peers.
Trice Medical ranked in the top 10% of all exhibitors, and the top 4% of exhibitors in its category, at the 2016 American Academy of Orthopedic Surgeons, which had more than 30,000 healthcare professionals in attendance. Trice Medical was complemented on its use of clear messaging, visually communicating the value proposition, and providing a easily accessible environment to show attendees. The AAOS is the largest annual trade show in the orthopedic space where companies and health care providers from all over the world convene to become educated on the latest technology and clinical evidence in the orthopedic marketplace.”
~ Financings and Other Milestones ~
AdvantEdge Healthcare Solutions continues its focus on organic growth and hired a Senior Vice President of Sales and Marketing to lead that effort. Additionally, during the first of 2016, AdvantEdge closed over $2.5 million in annualized new business.
Apprenda joined the Cisco® Solution Partner Program as a Solution Partner. As a member of the Cisco Solution Partner Program, Apprenda is able to quickly create and deploy solutions to enhance the capabilities, performance and management of the network to capture value in the ‘Internet of Everything’.
Good Start Genetics appointed Jeffrey Luber as President, Chief Executive Officer and member of the board. Previously, Mr. Luber served as Good Start Genetics’ general counsel and head of corporate development, where he established a number of key relationships and new business models central to the company’s growth in expanding markets. In addition, Good Start Genetics appointed Marc Jones as Chief Financial Officer. Mr. Jones has held a number of corporate finance positions in organizations ranging from Fortune 50 companies to dot-com start-ups.
Medivo announced that Swati Abbott was elected to the company’s board of directors.
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