PKWARE, Inc. Acquired by Novacap Technologies,
Maranon Capital, and Garrett Investments
MILWAUKEE (November 4, 2009) – Grace Matthews, Inc., a Milwaukee investment bank, announced today that PKWARE, Inc. (www.pkware.com) has been acquired by an investment group that includes Novacap Technologies, Montreal; Maranon Capital, Chicago; and Garrett Investments, Milwaukee, an investment holding company affiliated with Grace Matthews. Grace Matthews coordinated the formation of the investment group and negotiated the transaction with PKWARE’s shareholders.
PKWARE was founded in 1986 by the iconic Milwaukee software engineer Phil Katz, who passed away in 2000. The company develops and markets data file encryption and compression software that facilitates secure data storage and inter-network communications. PKWARE originated the popular “ZIP” file compression program that has been installed on millions of computers worldwide. Among IT professionals, PKWARE and its products SecureZIP® and PKZIP® enjoy a level of brand recognition shared by few others in the security software industry.
“Grace Matthews advised the current shareholders when they bought PKWARE from Phil Katz’s estate in 2001, and though it would have been logical to move the company to Silicon Valley or another tech-centric region, we were pleased they chose to keep this innovative company based here in Milwaukee,” said Doug Mitman, Managing Director at Grace Matthews. “With the new owners, this tradition will continue – PKWARE will remain a real gem in Milwaukee’s business community.”
Miller Newton, an experienced software executive with Milwaukee roots and the former CEO of Monster.com, is returning to the city to assume the role of CEO at PKWARE. Newton lived in Milwaukee for several years as an Executive Vice President with TMP Worldwide prior to assuming his role at Monster.com. “What’s unique and exciting about PKWARE is its approach to data security. While most data security providers focus on securing the physical network or communication lines, PKWARE is unique in that it encrypts the individual data files themselves,” he said. “It’s a simple and elegant solution. When the file itself is protected, users have better security, greater flexibility, and lower costs,” he added.
Pierre McMaster, a General Partner at Novacap noted: “PKWARE created the ZIP format that has become the industry standard for data compression. Extending this concept into the area of data security seemed a natural extension for PKWARE’s technology, and the market opportunities for the Company are very exciting.”
Demian Kircher, Managing Director at Maranon Capital, said “PKWARE’
business and technology are perfectly positioned to take advantage
of the emerging opportunities in the data security markets. We are
delighted to join Novacap Technologies and Garrett Investments in
supporting Miller Newton and management’s ambitious growth
plans for the Company.”
ABOUT GRACE MATTHEWS
Grace Matthews, Inc., a Milwaukee, Wisconsin based investment bank,
provides merger, acquisition and corporate finance advisory services
to private and public companies. Over the past decade, Grace Matthews
has successfully completed over 150 transactions on behalf of clients
ranging from private, middle-market companies to large, foreign
or U.S.-based multi-nationals. For more detailed information on
Grace Matthews, Inc., visit www.gracematthews.com.
ABOUT NOVACAP TECHNOLOGIES
Novacap Technologies is a functional group within Novacap, one of
Canada's leading private equity firms. Novacap Technologies invests
in companies focusing on growth and market leadership in the information
and communication technologies sector. It partners with first-rate
management teams and actively works with them to build leading organizations
in their markets.
Novacap is the only firm to have won the Canadian Venture Capital and Private Equity Association's “Deal of the Year Award” twice. In 2000, Novacap won for its Venture Capital investment in InnoMediaLogic Inc. Then, in 2005, Novacap won again in the Private Equity category for its investment in Santé Naturelle A.G. Ltd. For more information, visit www.novacap.ca.
ABOUT MARANON CAPITAL
Maranon Capital, L.P. provides senior and mezzanine debt and equity
co-investment financing, primarily for companies in the lower middle
market. For more information about Maranon Capital, please visit
www.maranoncapital.com.
CONTACT:
Doug Mitman, Managing Director
dmitman@gracematthews.com
(414) 278-1120