Wayne, PA--Holding company Safeguard Scientifics (NYSE: SFE) has led a $45 million financing for PixelOptics (Roanoke, VA), which has developed electronically focused prescription eyewear for vision correction. The financing includes $35 million in equity, of which Safeguard provided $25 million, and $10 million in venture debt.
The eyeglasses contain a liquid-crystal-display-like layer sandwiched in the lenses for rapid focusing. PixelOptics is expected to begin manufacturing of the lenses right about now by US Optical. The product, called "emPower," will be prescribed by eye-care professionals and will be initially sold in practitioners' offices
Syndicate partners for the equity financing include Delphi Ventures, The Carlyle Group, Longitude Capital, and Stark Investments, all of which participated in prior financing rounds; Horizon Technology Finance provided the venture debt. Proceeds will be used for working capital to launch and commercialize the company's product.
Well-timed exits
"Safeguard remains steadfast in the execution of our strategic game plan--to deploy capital in new, high-potential businesses, build value in our partner companies, and realize value through well-timed exits," said Peter Boni, president and CEO of Safeguard Scientifics. "Our partnership with PixelOptics reflects our business model to target companies that have an innovative product or service, rapid path to commercialization, and a strong management team."
"I have been wearing emPower since we began our due-diligence process and can't imagine going back to standard progressive lenses," said Gary Kurtzman, senior vice president and managing director in the life sciences group at Safeguard Scientifics. Kurtzman and Stephen Zarrilli, senior vice president and chief financial officer at Safeguard, will both join PixelOptics' board of directors.
"We anticipate launching emPower across North America and beginning a regional rollout in Europe within the next 12 months," said Ron Blum, president and CEO of PixelOptics. "Following this, we expect to start selling emPower in Asia within 24 months."
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