Message-ID: <6148743.1075845452117.JavaMail.evans@thyme> Date: Fri, 15 Dec 2000 04:32:00 -0800 (PST) From: jeffrey.snyder@enron.com To: jay.fitzgerald@enron.com, stephen.horn@enron.com, louise.kitchen@enron.com, michael.miller@enron.com, john.norden@enron.com, drew.ries@enron.com, jeffrey.snyder@enron.com, allan.sommer@enron.com, greg.whalley@enron.com, andy.zipper@enron.com Subject: Venture News, Friday, December 15, 2000 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Jeffrey Snyder X-To: Jay Fitzgerald, Stephen Horn, Louise Kitchen, Michael L Miller, John Norden, Drew Ries, Jeffrey Snyder, Allan Sommer, Greg Whalley, Andy Zipper X-cc: X-bcc: X-Folder: \Greg_Whalley_Oct2001\Notes Folders\Connect deletes X-Origin: WHALLEY-G X-FileName: gwhalley.nsf Enform expands Sun Micro partnership HOUSTON, Dec. 15 (LocalBusiness.com) -- Enform technology, a high-tech consultant, said it has expanded the company's strategic partnership with Sun Microsystems Inc. Privately held Enform said Palo Alto, Calif.-based Sun Microsystems (Nasdaq: SUNW) is letting the company employ its integrator technology called iForce eIntegrators, for use in creating Web applications and building back-end systems that connect to the site. Sun will help Enform build its service offerings and create custom consulting services, which will be jointly marketed. How much more business this will bring to Enform is not clear, and company officials today were not available to discuss the deal. Enform, which is run by John McNevin, a former partner at Ernst & Young, has grown quickly in its three-year existence. The Houston company helps businesses reinvent themselves by upgrading their systems or finding new technologies they need to remain competitive. Since its inception, Enform has apparently been profitable. It hasn't needed any venture capital to operate. The company has about 200 employees, with branch offices in Dallas and Austin, and expects to post sales of about $21 million this year. Enform recently told LocalBusiness.com that it expected to log about $100 million in sales next year, if the economy holds. Its client list includes Microsoft Corp., Engage Energy and Continental Airlines. ________________________________________________________ o Public MarchFirst Gets $150 Million from Francisco Partners CHICAGO -- MarchFirst, a publicly traded Internet services company, said that Francisco Partners, a private equity firm focused on investments in technology companies, has agreed to invest $150 million in the company in exchange for an eventual 32% equity stake. MarchFirst said it will use the new capital to focus on operations. The company assists business with services such as brand building. David M. Stanton and Neil M. Garfinkel, both of Francisco Partners, will join MarchFirst's board of directors, bringing the total to nine members. http://www.marchfirst.com/ _____________________________________________ o Aether Systems Buys RTS Wireless in $103 Million Deal OWINGS MILLS, Md. -- Aether Systems, a publicly traded provider of wireless data products and services, said it signed a definitive agreement to acquire RTS Wireless, a developer of software systems that connect the Internet to wireless devices. Aether will acquire RTS for a total of approximately $103 million, which includes $26 million in cash and 1.3 million shares stock, trading at $59.25. Aether will gain a team of 120 wireless engineers among RTS's 200 employees. RTS's investors include America Online and individuals. http://www.aethersystems.com / http://www.rtswireless.com/ _____________________________________________________- o E-Numerate Solutions Secures $9 Million in Round One MCLEAN, Va. -- e-Numerate Solutions, which provides technology that allows users to compare and analyze numerical data on the Web, said it has raised $9 million in its first round of funding led by Carlyle Venture Partners, which provided $3 million. Undisclosed individual investors also participated in the round. The company said it will use the funding to continue its expansion. http://www.e-numerate.com/ _____________________________________________ o Digital Broadband Cuts Staff Due To Faltering Funding Talks WALTHAM, Mass. -- Digital Broadband, which provides broadband communications services, said it would lay off "a substantial portion of its workforce." The company attributed the layoffs to "adverse market conditions and its inability to attract sufficient additional financing to fund its business plan." According to CNET'S News.com, the company will lay off 450 of its 526 employees, or 86% of its workforce. The company raised capital from THL, Alta Communications, BancBoston Ventures, and individual investors. http://www.digitalbroadband.com/ _____________________________________________ o E-Business Services Firm Bigstep.com Lays Off 34-Employees SAN FRANCISCO -- Bigstep.com, which provides small businesses with electronic business services, said it has laid-off 34 employees. Bigstep.com now has 110 employees. The company said the staff reduction will allow it to shift with market changes and remain a viable business. Employees received a severance package as compensation, the company said. Bigstep is backed by Worldview Technology Partners, InterWest Partners, Cardservice International, Compaq Computers, Office Depot, U.S. Venture Partners, Mayfield Fund, the Washington Post Company, Angel Investors LP, Partech International, Draper Richards, Argus Capital, Staenberg Private Capital, and undisclosed private investors. http://www.bigstep.com/ _____________________________________________ o Business Firm iReality Group Acquires Consulting Firm Semtor FORT LAUDERDALE, Fla. -- Hong Kong-based iReality Group, a business services firm, said it acquired the U.S. consulting firm Semtor for an undisclosed amount of stock. Semtor chairman and CEO Harold Gubnitsky said that Bloomberg and the Miami Herald listed the transaction at being valued between $70 million and $90 million, but he could not confirm that valuation. iReality Group will absorb Semtor and retain all of its employees. Both companies are backed by individual investors, and the new company may hold a round of mezzanine funding before seeking an IPO next year. http://www.irealitygroup.com/ http://www.semtor.com/ _____________________________________________