Invistics Closes Series A Round

Provider of lean manufacturing software raises $2.5 million in first round of institutional funding

Provider of lean manufacturing software raises $2.5 million in first round of institutional funding

Atlanta  August 29, 2003  Invistics Corporation (formerly SAK Logistics), a provider of lean manufacturing software designed to accelerate factory performance, this week announced closing $2.5 million in its first round of institutional funding.

H.I.G. Ventures and North Carolina-based Intersouth Partners led the Series A round with the participation of Imlay Investments and Atlanta Technology Angels.

"We set the bar extremely high when qualifying new investment opportunities," said Fred Sturgis of H.I.G. Ventures. "Invistics really impressed us with a proven solution that is already delivering significant results. In addition, Invistics' opportunity in the $5 billion supply chain software market is large and rapidly growing."

Invistics says it enables manufacturers to shorten cycle times, meet customer deadlines and ship more products. The solution provider claims its customers have reduced inventory and cycle times by an average of 50 percent while simultaneously raising on-time delivery to 99 percent or higher. Invistics' software solutions have been used to improve plant performance since 1999 for manufacturers such as DuPont and Bristol-Myers Squibb.

This $2.5 million investment provides Invistics with growth capital to expand in its target market for lean manufacturing solutions designed for complex manufacturing environments. Invistics said it will use the funds to accelerate the penetration of their software suite. The company will also expand its implementation services and customer support functions to meet the needs of its growing customer base.

"The loyalty of Invistics' customers and their overwhelming support for the company's FlowPath Management System is very impressive," said Kip Frey of Intersouth Partners. "Given the bottom-line impact that Invistics delivers to manufacturers, the leadership of CEO Tom Knight and the size of its addressable market, the company's potential for growth is considerable."

"Our focus on delivering measurable business benefits has paid off," said Tom Knight, CEO of Invistics. "We have already delivered results for several large manufacturers and been awarded multiple grants from the National Science Foundation. We're excited about the next phase of our accelerated growth."