Powervation Ltd. today announced it has closed a $3.0 million term debt agreement with Ares Capital Corporation that supplements a $4 million private equity financing that closed in the December quarter. All existing investors participated in the equity financing, including: Scottish Equity Partners (SEP), Braemar Energy Ventures, Intel Capital, VentureTech, 4th Level Ventures, and Semtech Corporation.
The funding will be used to scale the business in response to strong adoption of the Company’s Intelligent Digital Power™ IC products in the cloud server, high performance computing, communications, and power supply markets. The Company’s integrated digital control and digital power management IC products are based on a proprietary digital control platform which delivers best in class regulation, full auto-tuning, dynamic performance and breakthrough flexibility. Powervation’s intelligent digital dc-dc controllers provide superior programmable power solutions to the perennial power design challenges of efficiency, size, cost and time to market.
“We have enjoyed very strong growth and major breakthroughs for our intelligent digital dc-dc power solutions at market leading customers in the Cloud and Communications infrastructure space. This financing is an endorsement for Powervation’s momentum and potential in the exploding digital power IC market”, said Mike McAuliffe, CEO of Powervation.
According to a recent report from Darnell Group, the overall digital market will experience substantial growth over the next several years as users demand more advanced features and functions in their products. This growth was led by a surge in 2014 and settle down into a pattern of rapid growth for the next five years. Driven by growth across a number of sectors including communications, computers, solid-state lighting and a growing smart grid and energy management sector, the combined external ac-dc, embedded ac-dc and dc-dc converter modules markets will reach nearly $10 billion dollars in 2019.
The latest funding round will also enable Powervation to accelerate the development and deployment of its new digital controllers with industry leading xTune™ intelligent auto-tuning technology, and ITM™ intelligent, fast transient technology for multi-rail, multi-phase and integrated point of load applications.
“I’m very pleased with the support we’ve received from Ares Management and the continuing commitment from our existing investor constituency. This financing provides us with working capital to accelerate and scale the business to the next level”, said Rick Santos, Vice President and CFO of Powervation.
Source: http://www.powerpulse.net/story.php?storyID=31331
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