Electra Fleming has provided $24 million (ecu 22 million) to finance the formation of Knowledge Technologies International (KTI), a vehicle that has acquired an exclusive licence to the ICAD System, together with its associated global business, from Concentra, a Nasdaq-quoted software company.
ICAD is a knowledge-based organisation tool for design automation applications. It combines rapid design capabilities with knowledge of best practice, design and manufacturing procedures; these effectively automate product development from concept to production and enable users to achieve dramatic reductions in design cycle time.
ICAD, used predominantly by the aerospace and automotive industries, has an established blue-chip customer base that includes Airbus Industrie, Benetton Formula I, Boeing, British Aerospace, Fiat, Ford, General Motors, Jaguar, Lotus Cars, Pratt & Whitney and Sikorsky.
Garreth Evans, formerly senior vice president international of Concentra, heads KTI. The staff that worked on the ICAD product and business at Concentra have transferred to the new company. KTI has now relocated the ICAD business’s headquarters to Luxembourg, but its R&D operation remains in the US.
Electra Investment Trust provided $17.4 million of equity for a 72.5% equity stake in KTI and has committed a further $6.3 million in the form of a loan facility, currently undrawn.
Robert Clarke, a director of Electra Fleming who will join KTI’s board, commented “With ICAD customer reporting returns on investment in the region of 100% and productivity gains in excess of 50%, this business is well positioned to drive the market for knowledge-based engineering software products”.