Covington Associates Completes Sale of Torrent Systems, Inc. to Ascential Software
Boston, MA November 28, 2001 Covington Associates, seasoned M & A advisors to technology and healthcare, today announced the sale of its client, Cambridge-based Torrent Systems, Inc. ("Torrent"), to Ascential Software Corporation ("Ascential," NASDAQ: ASCL), a global provider of Information Asset Management (IAM) software, in a $46 million cash deal. A technology leader in the creation of highly-scalable parallel processing infrastructure software for use within data storage systems, Torrent's patented technology and the majority of its 60 employees will immediately be incorporated into Ascential's DataStageŽ product line and company operations. Ascential expects the Torrent acquisition to add between at least $5 million to $10 million to its revenue base during 2002, an increase of 5 to 15 percent sequentially from the third quarter of 2001.
"Working on the Torrent/Ascential merger was especially rewarding, since the combination is a clear case of the sum being greater than its parts," said Eric Shealy of Covington Associates. "And the benefits should be realized quickly given the pre-existing business relationship between the companies."
Like many of Covington Associates' clients, Torrent is a venture-backed company. Key investors include 3i Technology Partners, Intel Capital, North Bridge Venture Partners, Oak Investment Partners, and Venrock Associates. Torrent represented Covington Associates' ninth transaction in 2001 and the fourth in the past 3 months.
"We've been working closely with Ascential on the business front for many months," said Tom Ebling, Torrent's CEO. "When the possibility of acquisition emerged, we chose Covington Associates to advise us. Their assistance throughout the process was invaluable."
About Torrent Systems, Inc.
Torrent, headquartered in Cambridge, MA, is a leader in data transformation and analytical solutions for building, deploying and managing enterprise-scale custom applications that predict customer behavior and enhance customer profitability.
About Covington Associates
Covington Associates are seasoned M & A advisors to technology and healthcare. Focused exclusively on mergers and acquisitions, Covington Associates has established a track record of success based on deep domain experience and an unrivaled level of service from a team of senior advisors. Since 1991,