EMC – Among Others – Invests in Initiate Systems

Initiate Systems, Inc., in master data management (MDM) solutions, announced completion of a $26 million financing. Paladin Capital Group led the round, which also included participation from new investors Dunrath Capital, EMC Corporation and Informatica Corporation as well as existing investors, Sigma Partners, Apex Venture Partners and First Analysis Group.

“Investors have been very enthusiastic about participating in this round of funding,” said Bill Conroy, Initiate’s president and CEO. “The influence of these investors is a strategic advantage, as we capitalize on new opportunities and extend our leadership in MDM. This funding empowers us in our mission: Helping customers unlock the value of their data assets.”

Securing these recent investments is the latest success in a continuing series of achievements for Initiate. In 2007, the company increased its revenue and customer base by approximately 50 percent over 2006. In response to this rapid growth, Initiate added more than 85 employees last year. Crain’s Chicago Business recognized Initiate as one of Chicago’s fastest growing companies in 2007, and Intelligent Enterprise magazine included Initiate as a ‘company to watch’ among its 2008 Editors’ Choice Awards. The company’s Initiate Master Data Service software received the 2007 Product of the Year Award in the category of data integration from SearchDataManagement.

With Initiate software, organizations can identify data related to a single person, place, or thing – and securely share that information – using a highly accurate, scalable, and rapidly deployed solution. Initiate solutions are used around the world in a wide range of industries, including banking, hospitality, insurance, retail, retail pharmacy and healthcare organizations, as well as by state, provincial and federal government agencies.

Paladin Capital Group, a Washington, D.C. based private equity firm with deep understanding of the federal government, is focused on investing in businesses with products and services that address homeland security issues, an important growth sector for Initiate.

“Initiate has strong leadership and high-performing solutions that address critical requirements for data accuracy and data integration,” said Niloo Howe, managing director, Paladin Capital Group. “We are confident about Initiate’s prospects for continued success and look forward to supporting the company as it continues to grow.”

“This fundraising strengthens our balance sheet and allows us to continue expanding our market position while building a predictable, profitable business,” said Dan Kossmann, chief financial officer, Initiate Systems, Inc.