Tech Dealmaker Awards

Quovadx Inc., a publicly traded global software company based in Dallas, merged with a subsidiary company of Battery Ventures, in a move that recapitalized the company and took it private.

The deal saw Quartzite Holdings Inc., a wholly owned subsidiary of Battery Ventures VII LP, which operates under the name Rogue Wave Holdings Inc., acquiring the Rogue Wave software division of Quovadx. The Integration Solutions division of Quovadx was acquired by another Battery subsidiary, ISD Acquisition Corp.

Under the terms of the merger agreement, Quovadx stockholders received $3.20 in cash for each share of Quovadx common stock held.

In addition, Quovadx stockholders approved preclosing restructuring of Quovadx. The day prior to the Battery deals, Quovadx sold its CareScience division to Premier Inc. health care alliance of Charlotte, N.C., for $34.9 million, a multiple of approximately 2.3 times CareScience’s 2006 revenue.

Quovadx common stock ceased trading on the Nasdaq Global Market Exchange at market close on July 18.

Harvey A. Wagner, president and CEO of Quovadx said that the board and management team believed that the Battery deal was the best match for its employees, customers and partners.

According to Dave Tabors, general partner at Battery, both ISD and Rogue Wave Software organizations are well positioned to move forward as independent entities, following the deal.

— Bridget Botelho is a freelance writer in Providence, R.I.

Category

Top Recapitalization/Financing Deals

The Deal

Battery Ventures recapitalized Quovadx Inc. to the tune of $139.39 million, by merging Quovadx units with Battery subsidiaries. Closed on July 19, 2007.

Key Executives

Harvey A. Wagner, president and CEO, Quovadx Inc.; R. David Tabors, president, Quartzite Holdings Inc. and general partner, Battery Ventures.

Deal advisers

Legal: Hogan & Hartson LLP; Morris, Nichols, Arsht & Tunnell; Sullivan & Worcester LLP.
Financial: Atlantic Medical Management LLC; Dauphin Capital Partners; Nova Capital Management Ltd.; First Albany Capital Inc.

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