Versaware, a Web-based, multimedia and e-publishing developer, has secured $25 million in private financing from U.S. and European-based investment firms.
The New York City and Jerusalem-based company has received $18.5 million in combined investment from the BG Media, a U.S.-based private equity fund founded by executives from CBS, ESPN, Univision and Multimedia Inc., and from Capital Communications CDPQ, a U.S. firm specializing in communications investments. Versaware has also received another $6.5 million from Nomura International PLC, a U.K. investment bank specializing in underwriting technology ventures. This is Nomura's second investment in Versaware; the firm took an 11% stake in 1999.
Harry Fox, CEO of Versaware, said the investments represented "a strong vote of confidence in our market approach."
Tina Ravitz, COO of Versaware, told PW the financing would be used for "acquiring more content" through the continued licensing of print titles. "We'll use the investment to expand our production capabilities," Ravitz said, "build up our U.S. staff, increase our advertising and promotion budget and our general working capital."
Using a proprietary technology, Versaware can convert text titles into a wide range of electronic formats (including online multimedia). The company is also aggressively pursuing ventures in e-books and print-on-demand publishing through its e-publishing portal site, www.EbookCity.com.
