LOUISVILLE, KY (August 4, 2003) Genscape Inc., the nation’s first and only supplier of real-time power plant output and transmission information, announced today that it has been acquired by an investor group led by GFI Energy Ventures, LLC. Terms of the acquisition were not disclosed. Los Angeles-based GFI Energy Ventures originates and leads investments in businesses benefiting from and facilitating deregulation, competition, and technological change in the energy industry worldwide.
Louisville-based Genscape Inc. is the originator of real-time power supply information to support decision-making for energy traders, power plant and line owners and operators, regulators, and other energy market participants. The privately-held company was founded in 1999 by former energy traders Sean O’Leary and Sterling Lapinski to serve the unmet need for reliable, comprehensive supply-side information in the energy business. Collaborating with a number of the largest energy companies in the US, Genscape was able to develop an effective information delivery mechanism and launch its information delivery network in the spring of 2001.
Today, Genscape’s customers include the majority of the top 50 US power generating, trading, and marketing companies as well as federal and state entities. The company’s nationwide monitoring network currently contains real-time operating information on over 250 individual generating facilities and 20 strategic transmission lines.
According to GFI Energy Ventures Founding Principal Richard Landers, “Transparent and objective sources of market information are critical for smooth functioning of the energy markets, as the last few years of market turmoil have demonstrated. We are excited about the opportunity to back Genscape as it has emerged as the leading supplier of accurate and trustworthy information regarding the real-time status of generation and transmission assets throughout the US. Prudent market participants are realizing the value of Genscape’s proprietary information and it is becoming the indispensable source of generation and transmission data for traders, system operators, regulators, and other market participants. We are delighted to provide the capital and other support to help the Company meet this market need and continue to augment its suite of products and services that leverage off the information the Company’s proprietary system delivers. We think what Genscape is doing is both good business and very beneficial in the development of more transparent energy markets.”
”This involvement on the part of GFI validates Genscape’s competitive advantage and success in the domestic power market,” said Sean O’Leary, Genscape’s Chief Marketing Officer. “Over the years GFI has shown the ability to add value by selecting a strong portfolio of leaders in complementary niches in the energy field and giving them the resources and support they need to grow. The partnership between our companies will be tremendously helpful in allowing Genscape to expand geographically and to move into parallel markets.”
Genscape’s first round venture capital funding was secured in November 2001. Louisville-based Chrysalis Ventures, a leading source of equity capital for growth companies in the Southeast and Midwest, led the investment. Chrysalis was joined by Louisville-based Prosperitas Investment Partners, LP and Anchorage Angels, both private equity funds located in Louisville, and Vectren Enterprises, Inc., an energy services company based in Evansville, Indiana.
According to Chrysalis Ventures Managing Director Bob Saunders, “We’re extremely pleased with the success of our investment, and wish Genscape well as it graduates from our portfolio. Departing CEO David Doctor, and founders Sean and Sterling, did a great job growing from a company with a handful of customers when we invested into a dominant player today. This equity sale results in an attractive return to our fund and our co-investors.”
About Genscape Inc.:
Genscape Inc. is the originator of real-time power supply information to support decision-making for energy traders, power plant and line owners and operators, regulators, and other energy market participants. The privately-held company was founded in 1999 in Louisville, KY by former energy traders Sean O’Leary and Sterling Lapinski to serve the unmet need for reliable, comprehensive supply-side information in the energy business. Genscape’s patent-pending technology collects power supply information using a network of remote, wireless devices to monitor multiple points on the transmission grid.
For more information, please visit www.genscape.com.
About GFI Energy Ventures, LLC:
GFI Energy Ventures, LLC has been an equity investor in established, industry-leading companies serving the energy market since 1995. GFI has originated over thirty investments in companies that provide the systems, software, equipment, and services needed by participants in the competitive energy market. GFI oversees a portfolio of companies with market value in excess of $2 billion and is the co-general partner with Oaktree Capital Management, LLC of the $554 million OCM/GFI Power Opportunities Fund, L.P.
For more information, please visit www.gfienergy.com.