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Jan 3, 2002 12:00 AM
Creo Products Inc. (Vancouver, BC) has invested US $23.6 million in printCafe, Inc. as part of a US $39.6 million private placement of equity and debt. printCafe is the leading provider of print management software for both printers and buyers in the printing and publishing industry. Other investors in this financing include Mellon Ventures, Inc., HarbourVest Partners, LLC, J & W Seligman and Weiss, Peck & Greer, LLC.
The US$23.6 million investment by Creo of secured long-term debt will increase the company's voting interest in printCafe to approximately 40 percent from 17.24 percent. Representation on the printCafe board of directors will increase to two seats from one as a result of this investment. Amos Michelson, chief executive officer of Creo, will continue to serve as chair of the printCafe board of directors and one additional Creo representative will be named shortly. Creo will account for the investment in printCafe under the equity method.
"We believe that Creo's confidence in printCafe is a direct reflection of our people, our technology, and the viability of our market," said Marc Olin, president and chief executive officer of printCafe. "We are very pleased to be entering the new year with a strong balance sheet that allows us to power our own success from here. With significant obligations repaid, printCafe is operating from a position of financial strength."