SOURCE: Grotech Ventures

Grotech Ventures

August 17, 2010 09:56 ET

Grotech Ventures Announces Sale of United BioSource to Medco Health

$730 Million Deal Caps a Busy Year for Firm

VIENNA, VA--(Marketwire - August 17, 2010) -  Grotech Ventures, a leading early investor in high-potential technology companies and one of the longest-established firms in the venture industry, announced today that Medco Health Solutions, Inc. has agreed to acquire United BioSource Corporation (UBC), a Bethesda, Md.-based scientific and medical affairs organization. 

The all-cash transaction is valued at approximately $730 million and is expected to close in Q3 2010. Grotech first invested in UBC in November 2003, and the company raised a total of $275 million in equity funding from Berkshire Partners, Grotech Ventures, J.H. Whitney and Oak Investment Partners.

"UBC has been on a strong trajectory with an annual growth rate of more than 20 percent this year," said Frank Adams, Grotech's Founder and Managing General Partner and a UBC board member. "The company is in a hot market with a unique offering and is bolstered by a favorable regulatory environment given the healthcare reform legislation passed this year. It all came together to make them a very attractive acquisition candidate, and we are very pleased with the outcome."

The impending sale is Grotech's second exit this year, following the successful initial public offering for BroadSoft in March. The firm has also been busy with both new and continued investments this year. Zenoss and TRAFFIQ each took in an additional $4M in funding, while Living Social has secured more than $50 million in several rounds this year, each from Grotech and other investors. HelloWallet is Grotech's newest first round investment, securing more than $3.6 million in May. Grotech focuses on early stage investing and continues to invest throughout the portfolio's lifecycle.

About Grotech Ventures
Founded in 1984, Grotech Ventures ( is a leading early investor in high-potential technology companies. Grotech seeks investments in communications and IT infrastructure, software and services, and Internet and digital media. The firm focuses on the Mid-Atlantic and Southeast regions and other select geographies. Grotech continues to invest and add value throughout the growth of its portfolio companies. The firm has a strong combination of financial backing, industry relationships, and deep domain and operational expertise to accelerate growth. With approximately $1 billion under management in its seven funds, Grotech supports early-stage companies through investments starting at $500,000.

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