Safeguard Scientifics Leads $6 Million Series B Financing for Pneuron

  Safeguard Scientifics Leads $6 Million Series B Financing for Pneuron

   Pneuron’s cloud-ready ‘lightweight’ technology reduces time and cost of
            enterprise-class application development by up to 50%

Business Wire

WAYNE, Pa. -- March 5, 2013

Safeguard Scientifics, Inc. (NYSE:SFE), a provider of growth capital and
operational support to technology and healthcare companies, deployed $5
million as part of a $6 million Series B financing for Pneuron Corporation, a
Woburn, Mass.-based company that helps Fortune 5000 enterprise companies
reduce the time and cost of application development by up to 50% by building
solutions across heterogeneous databases, and applications through Pneuron’s
business-oriented platform. Existing investor Osage Venture Partners
contributed the remaining $1 million in the round.

Pneuron’s lightweight, cloud-ready enterprise-class platform provides a suite
of high-performance “pneurons” that enables enterprises to build, deploy and
manage distributed analytics, applications and operating models directly
against source systems and centrally integrate insights. Pneuron’s
patent-pending technology represents a fundamental change in business agility
and return on investment, challenging the entire model of up-front
centralization. Instead of bringing all the data, IP and assets into one
place, then analyzing it, Pneuron takes the analytics to the data. This
approach eliminates the need for large costly failure-prone systems and data
integration projects. As a result, Pneuron accelerates the delivery of, but
reduces the risk and cost to achieve, business objectives.

Pneuron is initially focused on some of the most pressing and complex areas of
financial services, including global regulations, risk, conversion management
and revenue generation. However, the company is already gaining traction in
insurance and healthcare with emerging partnerships. Pneuron is
well-positioned to address the billions of annual spend on cloud enablement,
information management software, analytics, and collaboration. Pneuron’s
go-to-market strategy includes partnerships with systems integrators and
independent software vendors such as PwC.

“We believe there is a very large market opportunity for Pneuron’s
technology,” said Philip D. Moyer, Managing Director, Technology at Safeguard,
who is joining Pneuron’s board of directors. “Data is expanding faster than we
can warehouse, and extract insights. Pneuron offers a refreshing break from
the never-ending model of centralized warehousing before a company can get
value from their data. The company has created a scalable platform that
dramatically reduces the time to build new solutions and create business value
because it uses existing databases, applications, and technologies. We are
excited by Pneuron’s proven ability to handle highly complex enterprise-class
applications for world-class customers and partners. Safeguard is thrilled to
partner with Pneuron as they change the world of data and analytics.”

Led by a management team of IT and business professionals from IBM, PwC, GE,
Honeywell, Bunge, Fiserv, CheckFree Corporation, the Federal Reserve Bank,
Lehman Brothers and Reed Elsevier, Pneuron will use the proceeds to develop
industry partnerships, expand into healthcare and other industry verticals,
and hire additional sales and business development representatives. Safeguard
previously partnered with Pneuron’s president and CEO Simon Moss, who
successfully ushered Safeguard’s former partner company, Mantas, to a
well-timed exit with Oracle’s i-flex division for $127 million, generating a
net gain of approximately $83 million for Safeguard.

“We plan to capitalize on our new financing and partnership with Safeguard to
accelerate and expand Pneuron’s access to the large enterprise market,” said
Simon Moss. “Having previously worked with the Safeguard team, I know them as
a talented, highly respected group with an impressive track record backing
successful technology innovators. Spring boarding off of this Series B
funding, we’re primed to help as many firms as possible realize the proven
benefits of Pneuron’s unique, breakthrough innovations with the objective of
halving their time to value and cost in a vast category of business problems.”

“We are very pleased to welcome Safeguard as a co-investor in Pneuron and
Philip Moyer to the Pneuron board,” said Nate Lentz, Managing Partner at Osage
Venture Partners and Pneuron board member.“Simon Moss and Pneuron are
assembling all the components of a world-class software business, including an
unparalleled technology solution, an all-star team, and a strong group of
directors and investors, which is enhanced by today’s announcement.”

With this financing, Safeguard acquired a 27.6% primary ownership stake in
Pneuron and holds two of the seven seats on Pneuron’s board of directors.

About Safeguard Scientifics

Founded in 1953 and based in Wayne, Pa., Safeguard Scientifics, Inc.
(NYSE:SFE) provides growth capital and operational support to entrepreneurial
and innovative healthcare and technology companies in medtech, healthtech,
specialty pharmaceuticals, financial technology, digital media, and Enterprise
3.0. For more information, please visit our website at www.safeguard.com.

About Pneuron

Pneuron Corporation provides Fortune 5000 firms with ground-breaking,
disruptive technology, the Pneuron Platform™, which accelerates creation,
deployment and management of new products, analytics and operational best
practices at fraction of the cost of alternative solutions. This critical,
real-time connection of the global enterprise occurs without traditional IT,
large data integration or deployment risk concerns prevalent in today’s
centralized data projects. For more information, visit www.pneuron.com.

Safeguard Press Resources

Blog: blog.safeguard.com
Twitter: @Safeguard
StockTwits: SFE
LinkedIn: Safeguard Scientifics
YouTube: SafeguardSFE
SlideShare: SafeguardScientifics

Forward-looking Statements

Except for the historical information and discussions contained herein,
statements contained in this release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. The Company’s forward-looking statements are subject to risks and
uncertainties. The risks and uncertainties that could cause actual results to
differ materially, include, among others, managing rapidly changing
technologies, limited access to capital, competition, the ability to attract
and retain qualified employees, the ability to execute our strategy, the
uncertainty of the future performance of our partner companies, acquisitions
and dispositions of partner companies, the inability to manage growth,
compliance with government regulations and legal liabilities, additional
financing requirements, the effect of economic conditions in the business
sectors in which our partner companies operate, and other uncertainties
described in the Company's filings with the Securities and Exchange
Commission. Many of these factors are beyond our ability to predict or
control. In addition, as a result of these and other factors, our past
financial performance should not be relied on as an indication of future
performance. The Company does not assume any obligation to update any
forward-looking statements or other information contained in this news
release.

Contact:

For Safeguard Scientifics
Gregory FCA
Mike Lizun, 610-642-1435
Mike@GregoryFCA.com
or
For Pneuron Corporation
Martin Rabkin, 845-647-5600
mrabkin@martinrabkinink.com
 
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