USDATA subsidiary eMake to receive $26.5 million in second-round funding
The funding will go to support operations and customer development as well as continued enhancements to the eMake suite of offerings, which were initially launched in Q2 of 2000 and will be expanded to selected major markets across the United States through Q1 of 2001.
eMake is the first Internet-enabled software, system, and service solution designed specifically for small and mid-size make-to-order manufacturers with less than $50 million in annual revenue. eMake gives these discrete manufacturers the systems and services to better control their business, manufacturing, and supply chain operations without the costly investment typically incurred with traditional plant-management software and technology solutions.
"We believe the Internet will significantly change the way business is conducted within the entire manufacturing supply chain," says eMake President and CEO Kerry Walbridge. "This second round of funding will help us bring eMake to a market segment that needs these solutions to thrive in the new Web-enabled business environment."
eMake was created in August of last year by combining USDATA's manufacturing and Internet expertise with the acquisition of Smart Shop Software located in Post Falls, ID. At that time, Safeguard Scientifics, Inc., USDATA's primary stockholder, invested an additional $10 million in USDATA in the form of a private placement to help fund the creation and launch eMake.
The recent round is expected to include an investment by Safeguard and SCP of $26.5 million in eMake preferred stock, which is convertible into eMake common stock or USDATA preferred stock. Due to the potential conversion into USDATA preferred stock, USDATA stockholders must approve the transaction in a special stockholder meeting.
"E-business changes the rules of the economic infrastructure. Safeguard's and SCP's interest in and additional allocation of resources to eMake speaks to the opportunity present in this market and the potential for eMake to establish market dominance. No other product and service suite addresses the needs of the small and midsize make-to-order manufacturer the way the eMake solution does," said eMake founder and USDATA CEO Bob Merry. "In the future, USDATA will be searching for additional opportunities, like eMake, to create value in the market place."
The subscription-based software, systems and services are enhanced by myemake.com and together make up the core of eMake Internet-enabled solutions. eMake offers a tightly integrated and secure environment for shop scheduling, managing production operations, and publishing shop-floor data to the Internet. It provides manufacturers and their customers and suppliers a secure, real-time connection to the production process - increasing communication, collaboration, customer service, and business flexibility.
The eMake suite of solutions includes both a licensed and an ASP version, all with Internet connectivity to myemake.com. Manufacturers can order the product or get more information by visiting www.emake.com.
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USDATA's launches eMake to provide e-biz services for make-to-order manufacturing