3i backs Chronicle with £3m financing and CEO
3i, world leading venture capital and private equity company, announces it is leading a £3m series A investment in Chronicle Solutions, international content software provider, along with syndicate partners Scottish Equity Partners and Societe Generale Asset Management Alternative Investments.
As part of the deal, Nick Kingsbury, Sector Partner at 3i, is appointed to the company as CEO to assist growth and further expansion of the company internationally, especially in its target US and European markets.
Founded in 2001, Chronicle Solutions is a pioneer in content capturing software solutions. The company addresses the pressing need for large organisations to be able to monitor activities within their network boundaries and protect their internal information assets. The company's main product, netReplay®, is the first ever enterprise-class Network Content ApplianceT which captures and indexes all types of user communication on a network, on a real-time basis. The system allows authorised managers to investigate inappropriate use of IT systems, and replay communication whether using email, Instant Messanger, WebMail, Blogs or even VOIP calls. NetReplay can also be used as a forensic tool in the event of a serious incident, where issues can be tracked down swiftly in a way that has simply not been possible before. Benefits of netReplay include significantly reduced investigation costs and minimised losses through fraud and reputational damage.
A PWC research report prepared for the UK DTI last year revealed that in 52% of large businesses, the cause of the most severe security breaches has been people within the organisation.
Nick Kingsbury, new Chronicle Solutions CEO, explains "We live in a world where all kinds of threats to larger organisations are very real, whether it is loss of confidential information or a few individuals involved in illicit activities. As such, it is critical that organisations now responsibly monitor what their people are doing, simultaneously protecting the rights, security and privacy of their employees."
3i Partner, Matthew Mead, added "We, at 3i, are excited about the ground breaking nature of the technology Chronicle Solutions offers, and the fact that it stands out as a local home-grown UK innovation in a market which has for the last several years been dominated by US offerings. I look forward to working with Nick and the Chronicle Solutions team to help the company to exploit its enormous growth potential."
Nick Kingsbury will be joining the Chronicle Solutions as CEO with immediate effect. Current CEO and Founder, Jerome Bilet steps into the position of Finance Director for Chronicle Solutions, Nick brings to the role 26 years of industry experience, including founding and running a systems integration and software house for over 10 years, and most recently six years at 3i assessing over 250 software businesses, helping those 3i invests in to succeed.
At this time Russ Cummings, a director in SEP's Information Technology Group, joins the Chronicle Solutions board of directors and Maurizio Arrigo, Partner with SGAM AI Private Equity, as a board observer.
Notes to editors
About Chronicle Solutions
Chronicle Solutions publishes netReplay: a network content monitoring and capturing solution that helps companies enforce email, instant messenger and Internet acceptable use policies. It enables forensic investigations by monitoring and recording relevant traffic, alerting on transgressions. It enables search, retrieval and replay of individual web sessions, including webmail and downloads.
3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital and Venture Capital and invest across Europe, in the United States and in Asia Pacific. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.
3i's Venture Capital business focuses on investing in scaleable start-up and early-stage businesses. The business currently manages over 200 investments across Europe, US, Asia and Israel, valued in excess of €1bn. 3i's VC investments fall into four main industry sectors, including healthcare, telecommunications, software and electronics/semiconductors.
3i's recent software investments include Redlynx (interactive TV), OmPrompt (messaging platform), Mindjet (mindmap visualisation), NordNav (GNSS), UDEX (RFID), PriceMinister (online auction), Datanomic (data integrity), Cachelogic (traffic management) and achieved successful realisations for Searchspace, Pedestal, RedDot, Evant and the IPO of Interhyp and Magix. For more information, go to http://www.3i.com
About Scottish Equity Partners
Scottish Equity Partners (SEP) is one of the largest independent private equity groups in the UK, and is currently investing from a venture capital fund in excess of £100 million, which is
backed by leading UK and European institutional investors.
Typically, we invest from £500,000 up to £5 million or more in financings of up to £30 million in early stage and growing companies in the information technology, healthcare & life sciences and energy related technology sectors.
With offices in Glasgow and London, SEP is one of the most active venture capital investors in the UK and has a strong investment track record, identifying companies with high potential at an early stage and working with them to realise that potential as they face the challenges of building a successful business.
Recent high profile successes include Wolfson Microelectronics, which now has a valuation of £445 million and bluetooth specialist CSR, now worth around £1.4 billion. For further information, and to register for regular news updates, see our website www.sep.co.uk
About Société Générale Asset Management Alternative Investments
SGAM AI Private Equity is a department of SGAM Alternative Investments, a subsidiary of SGAM, dedicated to equity investments in private companies. With a team of 70 specialists and €1.3 billion under management, SGAM AI Private Equity covers the major asset classes from direct investments (venture capital, expansion capital, LBOs, in western Europe and in emerging markets) to indirect investments (funds of funds).
With €220 million under management, the IT Venture Capital team is a key investor in high-tech companies in the field of Information and Communication Technologies. The team focuses on early-stage financing of European technology companies and leverages its broad expertise and international network to qualify investment opportunities and bring value to its portfolio companies. The team typically invests at first or second round of financing and is dedicated to helping its portfolio companies throughout their growth.
High profile portfolio companies include Dibcom (high-performance chipsets for mobile TV), Parrot (Bluetooth car kits), Sequans (semiconductors for WiMAX networks) and Attitude Studio (animated feature film studio).
Among high profile recent successes are Karavel (acquired by Amadeus for 60 M€) and Altitude Telecom (acquired by Iliad Group for 57 M€). For more information, go to http://www.sgam-ai.com/en/