Gloucester, MA and Ottawa, Ontario January 29, 2002 In a time when most people are staying away from new tech companies like a bad habit, IE-Engine seems to be comparatively alluring. Investors and management alike have invested in IE-Engine this month, which is more than many e-commerce companies can say.
The company, a provider of e-procurement workflow solutions for the employee benefits supply chain, first announced that it closed $6.4 million in Series A financing. The investment was led by Kodiak Venture Partners of Concord, Massachusetts, the investment syndicate includes Toronto-based RBC Capital Partners, the venture capital unit of Royal Bank of Canada, as well as previous investors. Funds will be used to accelerate the deployment of Insurance-Engine", the company's e-procurement workflow solution for the employee benefits and HR marketplace, and expand research and development activities.
We are thrilled to close this round with leading investors like Kodiak Venture Partners and RBC Capital Partners, stated Kevin Reed, Chairman & CEO of IE-Engine. Completing the round despite such turbulent times in the financial markets provides further validation that our e-procurement workflow solution for the employee benefits and HR industry brings compelling bottom line value to intermediaries, buyers, and sellers alike. Larger employers, brokers, consultants, and insurance carriers that utilize Insurance-Engine streamline their procurement processes, reduce cost and administration, cut cycle time, and create advantage. Customer response is extremely encouraging as we bring our sales efforts into high gear in 2002.
In addition, IE-Engine this month announced the appointment of John McMahon as President and Chief Operating Officer. McMahon was formerly Executive Vice President for Worldwide Sales and Operations at Ariba Inc.
McMahon comes to IE-Engine with more than 15 years of management experience in the software industry. Prior to holding the top position in worldwide sales and operations for Ariba, McMahon was VP of worldwide enterprise software sales for Cisco Systems. Prior to Cisco, he was VP of worldwide sales at GeoTel Communications Corporation, which was acquired by Cisco for $2 billion in 1999. As EVP of worldwide sales and marketing at Parametric Technology Corporation, McMahon was instrumental in escalating sales from $3 million to $1.1 billion over a span of nine years.
John has an intimate knowledge of supply chain automation and a remarkable record of achievement. His addition accelerates the company's strategic efforts to become the dominant provider of employee benefits and HR services e-procurement solutions for the larger marketplace, stated Kevin Reed, IE-Engine Chairman & CEO. John adds unparalleled vision to our already proven domain expertise within the employee benefits and HR marketplace. His broad experience in technology sales and operations, and his proven expertise in Enterprise Spend Management creates a win-win for our company, our customers, and shareholders.