CIMdata PLM Industry Summary Online Archive
5 October 2004
Company News
Altair Engineering Secures $30 Million in Capital through General Atlantic
Altair Engineering, Inc . announced that it has secured $30 million in funding through a new partnership with General Atlantic Partners, LLC. Allen & Company acted as placement agent and financial advisor to Altair senior management during this first outside investment. Lipson, Neilson, Cole, Seltzer, Rivkin & Garin P.C. of Bloomfield Hills, Michigan acted as legal counsel for Altair in connection with the transaction.
"This investment was a logical step in the progression of our company," said Altair Engineering President and CEO James R. Scapa. "The offering was extremely well-received by the investment community, which I attribute to the employees, customers and partners that we collaborate with daily. Altair initiated this process after 19 years of growth without outside investors. Working with General Atlantic and Allen & Co. was instrumental in the transaction being as successful as it was."
As the developer of Altair® HyperWorks®, Altair is a provider of high-end, open architecture Computer-Aided Engineering (CAE) software for modeling, visualization, optimization and process automation. The company's grid computing products, led by PBS ProT, are the leading workload management solutions for high performance computing environments, LINUX clusters and desktop cycle harvesting.
As part of the transaction, General Atlantic made a significant investment for a minority position in Altair. General Atlantic brings global expertise in partnering with fast growing, market-leading companies like Altair to increase the value they deliver to the market. Joining the Altair Board of Directors from General Atlantic Partners will be Marc F. McMorris, Partner.
Altair will use the new funding to accelerate growth and capital expansion, increase technology investments and secure additional liquidity as needed to support future corporate initiatives. Additionally, Altair will leverage the new investment to expand into new markets, both within North America and other key geographic regions around the world. Additional terms of the financing were not disclosed.
General Atlantic Partners, LLC, is a direct investment firm focused on investing globally in companies providing or using IT in ways that significantly transform the value proposition. GA's investment focus in IT includes providers of IT, IT-related services and users of IT in traditional industries such as healthcare, finance and government. The firm was founded in 1980 and has almost $6 billion in capital under management. General Atlantic has invested in over 125 IT companies and has current holdings in over 50 companies, of which almost one-third are based outside the United States and which include Archipelago, Digital China, Eclipsys, Exult, iSoft Group, IXOS Software AG, Liberata plc, Patni Computer Systems, ProxyMed, SESA, SRA International, Upromise, Xchanging and Zagat. See http://www.gapartners.com for additional information.
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