Stephen McKay
A Glen Allen tech firm has been snatched up in an eight-figure deal.
DriveFactor Inc., headquartered at 5300 Hickory Park Drive, has been purchased by an undisclosed buyer for $22 million. The deal was announced Wednesday by Safeguard Scientifics, a Pennsylvania technology and healthcare investment firm that owned 41 percent of DriveFactor.
DriveFactor CEO Stephen McKay would not comment on the deal beyond a prepared statement issued by Safeguard Scientifics.
“This is an exciting new chapter in DriveFactor’s history, and we couldn’t have realized this milestone without our financial backers and the commitment of our employees,” he said in the release.
DriveFactor was founded in 2010 and was previously known as Crimson Informatics. The company produces technologies that help insurance companies monitor driving behavior to determine policies.
It was named in the Companies to Watch list by Venture Forum RVA in 2012 and pitched to a group of investors at another Venture Forum event last year.
In addition to Safeguard, DriveFactor had taken on QED Investors as a financial backer and has raised millions of dollars in funding from investors over the years.
Safeguard said in its release that it first invested in DriveFactor in 2011 and had put $4.5 million into the company.
Securities and Exchange Commission filings show DriveFactor raised $2.9 million from investors in 2011, $2.04 million in 2012 and an additional $3.24 million in 2013.
Safeguard said it will eventually get $10 million out of the sale of DriveFactor, but would not comment further on the deal.
It’s the latest in a string of acquisitions in 2015 involving local firms, including both on the buyer and seller side.
The local deals have involved a musical instrument maker, a wine distributor, an Ashland industrial company, a Southside investment firm, a frozen yogurt chain and more.
The biggest deal of the year so far involving a Richmond company was the announcement of the pending merger of downtown-based MeadWestvaco with another large competitor.
Stephen McKay
A Glen Allen tech firm has been snatched up in an eight-figure deal.
DriveFactor Inc., headquartered at 5300 Hickory Park Drive, has been purchased by an undisclosed buyer for $22 million. The deal was announced Wednesday by Safeguard Scientifics, a Pennsylvania technology and healthcare investment firm that owned 41 percent of DriveFactor.
DriveFactor CEO Stephen McKay would not comment on the deal beyond a prepared statement issued by Safeguard Scientifics.
“This is an exciting new chapter in DriveFactor’s history, and we couldn’t have realized this milestone without our financial backers and the commitment of our employees,” he said in the release.
DriveFactor was founded in 2010 and was previously known as Crimson Informatics. The company produces technologies that help insurance companies monitor driving behavior to determine policies.
It was named in the Companies to Watch list by Venture Forum RVA in 2012 and pitched to a group of investors at another Venture Forum event last year.
In addition to Safeguard, DriveFactor had taken on QED Investors as a financial backer and has raised millions of dollars in funding from investors over the years.
Safeguard said in its release that it first invested in DriveFactor in 2011 and had put $4.5 million into the company.
Securities and Exchange Commission filings show DriveFactor raised $2.9 million from investors in 2011, $2.04 million in 2012 and an additional $3.24 million in 2013.
Safeguard said it will eventually get $10 million out of the sale of DriveFactor, but would not comment further on the deal.
It’s the latest in a string of acquisitions in 2015 involving local firms, including both on the buyer and seller side.
The local deals have involved a musical instrument maker, a wine distributor, an Ashland industrial company, a Southside investment firm, a frozen yogurt chain and more.
The biggest deal of the year so far involving a Richmond company was the announcement of the pending merger of downtown-based MeadWestvaco with another large competitor.