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Stream Theory, Inc.
http://www.streamtheory.com/
We are pleased to announce that one of Keiretsu Forum's portfolio companies, Stream Theory, Inc., is being acquired this month by UK-based Tadpole Technology at a valuation of US$25 million dollars.
Tadpole is a publicly traded company on the London stock exchange. The deal is scheduled to close within a few weeks and includes a follow on earn-out provision in for the benefit of existing shareholders which could bring the total value of the acquisition to as much as US$175 million over the next two years.
Stream Theory is a Mountain View-based software company that has created patented technology enabling any software to be streamed in real time over broadband networks. The company recently landed a multi-million dollar contract with Softbank, the largest ISP in Japan, and has established licenses with numerous other ISPs around the globe.
A number of Keiretsu Forum members in Northern and Southern California participated in a bridge round prior to the transaction which will provide them with a sizable multiple on their investments. "Keiretsu investors really came through for Stream Theory at a crucial time for the company. I know that CEO Steig Westerberg was very grateful to receive the swift support from Keiretsu when he needed it most to keep the company's momentum going," says John Dilts, Managing Director of Keiretsu's Westlake Village chapter. John has served on Stream Theory's Board of Directors over the past several years and introduced the opportunity for investment to help bridge the company to the acquisition. Given the significant IRR for this deal which will be finalized later this month, this will likely be the most successful Keiretsu investment to date. Keiretsu member Mark Greenfield agreed to serve as company counsel for the acquisition following Stream Theory's presentation to Keiretsu.
See http://www.tadpoletechnology.com/dynamic/news/2004/138.html for more information on the deal.
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