Powervation Raises $ 7M in Debt and Equity Financing
Funding Fuels Business Growth & Product Development for Intelligent Digital Power™ Products
Cork, Ireland, and San Jose, CA, December 22, 2014: Powervation Ltd. (www.powervation.com), the Intelligent Digital Power™ company, today announced it has closed a $3.0 million term debt agreement with Ares Capital Corporation that supplements a $4 million private equity financing that closed in the December quarter. All existing investors participated in the equity financing, including: Scottish Equity Partners (SEP), Braemar Energy Ventures, Intel Capital, VentureTech, 4th Level Ventures, and Semtech Corporation.
The funding will be used to scale the business in response to strong adoption of the Company's Intelligent Digital Power™ IC products in the cloud server, high performance computing, communications, and power supply markets. The Company's integrated digital control and digital power management IC products are based on a proprietary digital control platform which delivers best in class regulation, full auto-tuning, dynamic performance and breakthrough flexibility. Powervation's intelligent digital DC/DC controllers provide superior programmable power solutions to the perennial power design challenges of efficiency, size, cost and time to market.
"We have enjoyed very strong growth and major breakthroughs for our intelligent digital DC/DC power solutions at market leading customers in the Cloud and Communications infrastructure space. This financing is an endorsement for Powervation's momentum and potential in the exploding digital power IC market", said Mike McAuliffe, CEO of Powervation. A recent market forecast report from IHS has projected continued rapid growth for the global digital power management IC market with a forecast of over 50% CAGR growth to exceed a $3 billion market opportunity by 2018.
The funding round will also enable the company to accelerate the development and deployment of its new digital controllers with industry leading xTune™ intelligent auto-tuning technology, and ITM™ intelligent, fast transient technology for multi-rail, multi-phase and integrated point of load (POL) applications.
"I'm very pleased with the support we've received from Ares Management and the continuing commitment from our existing investor constituency. This financing provides us with working capital to accelerate and scale the business to the next level", said Rick Santos, Vice President and CFO of Powervation.
Powervation (www.powervation.com), the Intelligent Digital Power™ Company, delivers smarter and simpler digital power IC solutions for designers of communications, computing, and power supply solutions. The company's digital DC/DC controllers with xTune™ auto-tuning technology deliver significant benefits in performance, efficiency, reliability and breakthrough design simplicity. Powervation is a privately held company backed by leading venture and corporate strategic investors, and is headquartered in Cork, Ireland, with offices in San Jose, California, Taipei, Taiwan and Shenzhen, China.
About Ares Capital
Ares Management, L.P. (NYSE: ARES) is a leading global alternative asset manager with approximately $79 billion of assets under management with offices in the United States, Europe and Asia. For more information, please visit www.aresmgmt.com.
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