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Capstone Partners Advises Punch Software in Transaction With Insight Venture Partners

April 2004

Boston, MA - Punch Software, the premier developer of retail and professional home and landscape design software, has successfully completed an equity recapitalization transaction in partnership with Insight Venture Partners, a New York based leading private investment firm dedicated to the software industry. The transaction was announced today by Capstone Partners, a leading national investment banking advisory firm, who represented Punch Software as its financial advisor throughout the transaction process. Financial terms of the transaction were not disclosed.

“This is truly a win-win transaction. Insight Venture Partners immediately owns the leading market share with tremendous growth opportunities and the Punch shareholders achieved their interim liquidity while gaining access to much deeper strategic expertise,” said John Ferrara, Capstone Partners President and Managing Partner. “The combination of Punch’s momentum in the market and Insight’s ability to augment the growth of its portfolio companies is a positive step in Punch’s business strategy and will provide the company with the necessary depth for the same winning management team to execute its plan.”

The transaction is the culmination of a four year relationship between Capstone and Punch Software during which the investment bank served in a strategic advisory capacity for the software company. Since 2000, the Capstone team consulted with the Punch’s shareholders to assist the company with its corporate growth strategy and help it develop a channel strategy to expand its product offerings to the professional architectural design market.

“Capstone was truly a partner in our business. At each stage of our evolution and growth over the past few years, they provided us with valuable strategic direction,” said Gary Jenkins, a principal shareholder of Punch Software. “Capstone became intimate with our business and our industry which allowed them to really roll up their sleeves and help build real value as part of our team. The capital markets expertise they brought to the table was invaluable and enabled a very successful transaction with Insight.”

“Punch was focused exclusively on developing software for the retail sector,” added Jacob Voorhees, a Vice President with Capstone. “We worked with their management to help engineer a strategy to penetrate the lucrative professional channel, a plan they are executing successfully which will significantly enhance the company’s long term value.”

Punch Software is the leading developer of retail and professional home design software for consumers, contractors, architects and other construction professionals. Based in Kansas City, MO, the company sells its home design software in North America, Europe and Australia. For more information, visit www.punchsoftware.com.

Insight Venture Partners, with approximately $1 billion in funds under management, is a leading private equity and venture capital firm specializing in software companies including the financial services, telecommunications, advanced manufacturing and distribution and energy sectors. For more information, visit www.insightpartners.com.

 

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John Ferrara

Founder & CEO
“Capstone has a style and approach that is remarkable to watch. They have a way of roping in wayward issues with complete finesse. Bottom line – a phenomenal job. We did not have one moment of regret in our decision to engage Capstone.”
Peter Pierce
CEO, Princiapl Shareholder
Punch Software