Sverica Capital Management has acquired a majority equity interest in Gener8, a designer and manufacturer of high complexity products, primarily for medical device, diagnostics and industrial applications.
Gener8 has specific expertise in microfluidics, optics, electronics and embedded systems and its capabilities include end-to-end design, development, prototype and low-to-medium volume manufacturing. Gener8’s engineering team is composed of more than 30 PhDs with disciplines that include electrical, mechanical, software, optical and systems engineering.
The company, founded in 2002 by CEO David Klein, has a 40,000 sq. ft. facility in Sunnyvale, CA with Class 100, 1,000 and 10,000 clean rooms for optical subassemblies (www.gener8.net).
“Gener8 has independently grown to be a significant player in the technology design, engineering and manufacturing space, but in partnership with Sverica, and the associated experience and capital they bring, Gener8 will be well-positioned to realize its long-term potential as a global provider of technology solutions,” said Mr. Klein.
“Our interest in Gener8 was born out of our experience in medtech manufacturing,” said Dave Finley, Managing Partner at Sverica. “Gener8 occupies a compelling position at the intersection of technological trends and the commercialization of IP. Sverica is excited to partner with the Gener8 team to build a leader in the engineering and production of turnkey medical and industrial technologies.” In January 2018, Sverica sold a majority of its equity in medtech company Resonetics, a Nashua, NH-based medical device contract manufacturer with a specialty in laser micro-machining, to Regatta Medical, a portfolio company of GTCR. Sverica maintains a minority equity position in Resonetics.
Sverica invests from $10 million to $40 million in US or Canadian-based companies with enterprise values under $100 million. Sectors of interest include information technology, business services, healthcare services and high-value industrial products. Sverica was founded in 1993 and has raised over $700 million of capital across four funds. The firm has offices in Boston and San Francisco (www.sverica.com).
The investment in Gener8 is Sverica’s sixth investment from its fourth fund which closed in March 2016 at its hard cap of $275 million.
© 2018 Private Equity Professional | August 21, 2018
