Pavilion Technologies Secures $29.6 Million to Accelerate Growth; Investment to Fund Enterprise Optimization Software Solutions

Business Wire, Jan 15, 2001

Business Editors & High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Jan. 15, 2001

Pavilion Technologies, Inc., ("Pavilion"), a leading provider of enterprise optimization software solutions, has completed a $29.6 million private equity offering to accelerate global sales efforts, to launch new enterprise solutions, and to expand into new markets. William Blair Capital Partners VI, L.P. of Chicago, a private equity investment fund affiliated with Chicago investment bank William Blair & Company, L.L.C., led the equity financing. BA Venture Partners and Chairman of the Board Lee Walker, former president of Dell Computer Corporation, assumed a significant interest in the round. Existing investors Seed Capital Partners and First Capital Group extended their equity position.

"Pavilion has an enviable list of satisfied Fortune 500 customers, a robust patent portfolio, and a plan for profitable growth," said Ellen Carnahan, managing director at William Blair Capital Partners, who will join the company's Board of Directors. "Pavilion is a truly unique investment opportunity. We are excited to contribute to the company's success in the emerging and lucrative enterprise optimization marketplace - a segment Pavilion is defining."

Over the past decade, more than 200 customers have selected Pavilion's optimization solutions to gather intelligent insights from enterprise data, model outcomes, automatically optimize processes, and make the best decisions in real time. Pavilion has leveraged its technology to optimize a variety of business processes, from customer acquisition to budget allocation to emission control. Pavilion plans to introduce a new suite of enterprise optimization software solutions at its annual Pavilion Optimization Summit in May.

"Our customers are the best at what they do - from energy generation to chemicals and polymers to other commercial applications - and they continue to turn to us to deliver the best, most profitable optimization solutions for their business," said Pete Perialas, president and CEO of Pavilion. "From BP to Reliant Energy, our customers realize millions of dollars in value each year from our solutions.

Our customers are so convinced of the value of optimization, that they have paid us to cooperatively develop the next generation enterprise solution." Anchor Products, BP and Nestle have recently partnered with Pavilion Technologies, Inc. to develop new optimization solutions for their industry.

"Businesses that do not invest in analytics will be faced with islands of data and sub-optimal decisions," said Andrew Garschagen, an Associate with William Blair Capital Partners. "The world's leading companies - the very companies on Pavilion's customer list - are investing in technologies that connect their data, optimize decisions in real-time, and generate profits for the company. The enormity of the enterprise optimization market is validation of this investment and the opportunity for Pavilion."

In the past six months, Pavilion has secured numerous new customers, contract renewals, and project extensions. In addition, Pavilion has signed three major alliances with global energy, consumer products, and automation companies. "Pavilion creates millions of dollars in value for all kinds of companies - from smokestack to bandwidth. With this kind of value proposition and customer affirmation, Pavilion is poised for tremendous growth," said Lee Walker, Chairman of the Board. "I have increased my investment in Pavilion because I believe in the universal appeal of Pavilion's technology, its market, its employees, and the leadership group we have assembled. I am deeply committed to Pavilion's continued success." Under Walker's leadership, Dell Computer Corporation introduced the direct sales model, experienced tremendous growth, and successfully completed its initial public offering.

Pavilion is a holding company with subsidiaries that operate in the U.S., Europe, and Asia. Pavilion owns or has rights to a portfolio of more than 48 data analysis and optimization patents and 70 patents-pending to meet the needs of its customers in discrete markets. Pavilion Technologies, Inc., PAVTech New Zealand, and Trajecta are part of the Pavilion family of companies, providing solutions to the chemical, energy, consumer product, pulp and paper, cement, financial service, pharmaceutical and telecommunication markets.

About William Blair & Company

Founded in 1935, William Blair & Company, L.L.C. is an employee-owned financial services firm offering investment banking, equity research, institutional and private brokerage, asset management and private capital to individual, institutional and issuing clients. Located in Chicago, Hartford, London, New York, San Francisco, Tokyo, Vaduz, and Zurich, William Blair & Company is entrusted with more than $22 billion in client assets. William Blair Capital Partners VI, L.L.C., is a $270 million private equity investment fund headquartered in Chicago. William Blair Capital Partners VI is the sixth private equity fund affiliated with William Blair & Company. William Blair Capital Partners, L.L.C., founded in 1981, invests in well-managed, growth companies across a variety of industries. WBCP specializes in Information Technology, with approximately 25 to 30% of the funds invested in companies in the software, services, telecommunications, and new media industries. For more information visit: www.williamblair.com.