(Cascadia Capital represented Micro Power in this transaction)
Micro Power Meets Growing Demands for Portable Power with $9 Million in New Funding
May 10, 2004 (HILLSBORO, OR) -- Micro Power Electronics, Inc., a leading developer of custom portable power systems for use in mission-critical mobile applications, today announced it has secured nine million dollars in new funding from Sierra Ventures, a Sand Hill Road venture capital firm, and Silicon Valley Bank, the primary subsidiary of Silicon Valley Bancshares. The investment will enable Micro Power to accelerate its national expansion and broaden its research and development efforts to meet the growing power requirements in the portable medical, rugged handheld computing and field instrument markets.
"Power has become the limiting factor in the development of new generation mobile devices, fueling the need for high performance battery systems that are optimally designed and manufactured for the target device," said Jeff Drazan, general partner for Sierra Ventures. "The investment we have made in Micro Power reflects our confidence that the company is in a unique leadership position as the market transitions beyond an assembly industry to a high-value design and manufacturing industry. "Micro Power's sound market strategy coupled with its diverse management team, advanced development processes and years of battery application experience makes this an extremely appealing venture."
Today's life-saving and mission-critical portable devices such as automatic external defibrillators, RFID readers and mobile diagnostic analyzers require battery power packs to be smaller and lighter, yet more powerful. Micro Power has developed thousands of battery systems and smart packs, including those using advanced Lithium-ion cells, and its expertise extends across the full breadth of advanced portable power solutions development. Micro Power battery systems are found in the world's leading portable mission-critical devices.
"Our customers are pushing the limits in mobile systems design and they rely on our nearly 20 years of portable power knowledge to help them provide the safest, most durable and best-performing competitive products in their industries," said Greg Love, chief executive officer of Micro Power. "Sierra Ventures' aggressive focus on the power market, as evidenced by their backing of Valere Power, combined with their reputation for guiding companies to success, makes it an ideal partner for Micro Power."
As part of the funding, Drazan and Ben Yu, a venture partner from Sierra Ventures, will join Micro Power's board of directors. Ridge Capital Partners, L.L.C. continues as an investor in Micro Power. Cascadia Capital, L.L.C. served as Micro Power's financial advisor in this transaction.
About Micro Power Electronics, Incorporated
Micro Power Electronics, Incorporated is an ISO 9001-2000 certified and FDA registered supplier of custom battery systems for the portable medical, rugged handheld computing and field instrument markets. As a pioneer in the development of Lithium battery systems and smart battery packs, with nearly 20 years of experience developing battery solutions for the world's most demanding customers, Micro Power is capable of meeting the most challenging power requirements. Offering the widest range of state-of-the-art battery cells, accurate fuel gauging technologies and the latest in smart battery options, Micro Power battery systems are optimized to deliver maximum performance in the customer's application and verified extensively to perform reliably and safely in challenging work environments. With a proven track record of technical excellence, quality solutions and award-winning service, Micro Power has become the fastest growing supplier of custom battery systems in North America. For more information, please visit www.micro-power.com or call 800-576-6177.
About Sierra Ventures
Sierra Ventures, founded in 1982, is a privately held venture capital firm focused on investments across all areas of the Information Technology sector from semiconductors to enterprise software. Sierra Ventures has managed eight venture capital partnerships and currently has more than $1 billion of capital under management. Some of the firm's investments include Combinet (acquired by Cisco), StrataCom (acquired by Cisco), ConvergeNet (acquired by Dell), Quinta (acquired by Seagate), Intuit (INTU), OnLink (acquired by Siebel), Healtheon (merged with WebMD), AmeriGroup (AGP), Micromuse (MUSE), Active Software (acquired by WebMethods), Centex (acquired by WorldCom), and Interact Commerce (acquired by Sage). For additional information please visit www.sierraventures.com
About Silicon Valley Bank
Silicon Valley Bank provides diversified financial services to emerging growth and mature companies in the technology, life sciences and private equity markets, as well as the premium wine industry. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients' success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves more than 9,500 clients across the country through 26 regional offices. More information on the company can be found at www.svb.com.
About Ridge Capital Partners
Based outside of Washington, D.C., Ridge Capital Partners is a private equity investment firm focused on partnering with managers to pursue platform build-ups and growth investments in companies in the smaller end of the middle market. Together since 1992, the partners of RCP collectively have over 30 years of private equity experience and have made over 55 investments in middle-market companies. Ridge currently manages over $50 million of equity capital in industries including niche manufacturing, value-added design/assembly, business services, consumer products, and distribution. www.ridgecapital.com
About Cascadia Capital
Cascadia Capital (www.cascadiacapital.com) offers corporate finance, mergers & acquisitions, strategic advisory services, and capital market services to companies across North America. Cascadia Capital serves emerging growth and middle market companies, both public and private. The firm focuses on the following sectors: Information Technology, Communications, Security & Defense, Healthcare, and Industrial & Consumer.
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