WAYNE, PA - Safeguard Scientifics, Inc. (NYSE: SFE), a holding company which builds value in growth-stage technology and life sciences companies, today announced the sale of its holdings in Pacific Title & Art Studio, Inc., a leading provider of a broad range of digital and photo-chemical services for post-production and archival applications in Hollywood's motion picture and television industry, to an investment group led by Celerity Partners, Ticonderoga Capital and venture capitalist William Daniels, for $23 million. Pacific Title was a whollyowned subsidiary of Safeguard at the time of the sale.
Safeguard partners with technology companies that have a competitive advantage in Software as a Service (SaaS), Technology Enabled Services and Internet-based businesses, and life sciences companies that focus on molecular diagnostics, medical devices and specialty pharmaceuticals. With a rich history of innovation spanning more than 50 years, Safeguard is well-positioned to become the preferred catalyst for growth-stage companies within these core sectors.
"Safeguard is looking to deploy capital in innovative and attractive companies in market segments that are a reflection of our strategy to generate increased value for our shareholders," said Peter J. Boni, President and Chief Executive Officer of Safeguard. "While Pacific Title is a fine company led by a solid management team, the company is in a business segment that is no longer considered core to our strategy. This shift in our objectives was a key component in our decision to sell the company." Safeguard first acquired an interest in Pacific Title in 1997.
"Technology has driven fundamental changes in the production, post-production and archival applications in the Hollywood motion picture and television industry," said John A. Loftus, Executive Vice President and Managing Director of the Technology Group at Safeguard. "We value our partnership with Pacific Title and its management team and believe that the Company will continue to meet the highquality service and technology support needs of motion picture studios and production companies."
About Pacific Title
A pioneer since 1919 in the development and introduction of new methods, services and technologies, Pacific Title is uniquely positioned to lead the continued expansion of digital technologies. Pacific Title provides a complete array of state-of-the-art digital post-production capabilities both for new releases and restoration of film libraries. Pacific Title maintains post-production facilities as components of its full range of integrated services and serves clients such as Walt Disney Company, 20th Century-Fox, Universal Studios, Warner Bros., Sony Pictures Entertainment, Dreamworks SKG, Columbia/Tri-Star and Paramount Pictures. Pacific Title was honored this year with an Academy Award for its technical achievements in digital archiving.
Safeguard Scientifics, Inc. (NYSE: SFE), a holding company, builds value in growth-stage technology and life sciences businesses. We provide growth capital as well as a range of strategic, operational and management resources to our partner companies. Safeguard participates in growth buyout financing, including corporate spin-outs and management buyouts, expansion financings, industry consolidations and early-stage financing. www.safeguard.com.
About Celerity Partners
Celerity Partners is a private equity fund whose objective is to build businesses, in partnership with management, to preeminence in their respective markets. Since its inception in September 1995, Celerity has invested in over 60 companies with an aggregate transaction value in excess of $2.5 billion. Celerity has offices in Los Angeles and Menlo Park, California. www.celeritypartners.com.
Ticonderoga Capital is a later stage venture capital firm specializing in technology-enabled business services investments such as Pacific Title. Ticonderoga has offices in Wellesley, Massachusetts and Menlo Park, California. The Ticonderoga management team has over 50 years of collective venture capital experience, with investments in over 75 companies since 1984. www.ticcap.com.
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward-looking statements are subject to risks and uncertainties. These forward-looking statements that could cause actual results to differ materially, include, among others, managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, the ability to execute our strategy, the uncertainty of the future performance of our companies, acquisitions and dispositions of companies, the inability to manage growth, compliance with government regulations and legal liabilities, the effect of economic conditions in the business sectors in which our companies operate, and other uncertainties described in the Company's filings with the Securities and Exchange Commission. Many of these factors are beyond our ability to predict or control. In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of future performance. The Company does not assume any obligation to update any forward-looking statements or other information contained in this press release.
Safeguard Scientifics, Inc.
Heather Bentley | 610 293 0600 | Manager, Marketing Communications
Source: Safeguard Scientifics, Inc.