Stonebridge Technology Associates Advises Custom One Design, Inc. On Private Placement of Equity Securities

March 20, 2006 - Stonebridge Associates LLC announced today that it acted as the exclusive financial advisor to Custom One Design, Inc., a semiconductor company, in a private placement of equity securities.

Client Background

Custom One Design, Inc. (“C1D”) is a fabless semiconductor company that designs and manufactures advanced analog, mixed-mode, and radio frequency application specific integrated circuits. Specializing in true “system-on-a-chip” development, C1D combines advanced circuit design, complex system integration techniques, and diversified semiconductor process technology expertise to deliver best-in-class products to its customers. C1D’s chipsets are used in devices that range from blood glucose monitors to cellular phones to CT imaging scanners. Founded in 1991, C1D had funded all of its prior product development initiatives with founder’s capital, internally generated funds and loans from banks and strategic partners.

Transaction Rationale

C1D retained Stonebridge Technology Associates to assist the Company in raising private equity capital from either strategic or institutional investors to fund the Company’s projected rapid growth and retire existing indebtedness. Prior to contacting investors, Stonebridge worked closely with management to refine C1D’s strategic growth plan and to identify provisions of prior loan, license and strategic partner agreements that could potentially hinder the capital raising process. In approaching prospective investors, Stonebridge identified those parties that were familiar with the semiconductor sector and could, through their previous experience or existing market presence, assist C1D in achieving its growth plan.  

Stonebridge Role

Despite the significant challenge in freeing the Company from its previous creditor and licensor relationships, Stonebridge was able to assist C1D in raising up to $20.0 million in Series A Convertible Preferred Stock from an internationally recognized, New York City-based institutional investor. The transaction consisted of an initial tranche of $12.5 million which was funded at closing and a second tranche of $7.5 million which is to be funded in the event C1D realizes a specific revenue threshold within twelve months of the transaction closing date.

About Stonebridge Technology Associates

Stonebridge Technology Associates, a division of Stonebridge Associates, LLC, specializes in providing merger and acquisition advisory and capital raising services to software, hardware, Internet, healthcare, and other technology product and service companies. Stonebridge Associates, LLC is a FINRA-registered investment banking firm that provides creative solutions to middle market and emerging growth companies in mergers and acquisitions, private placements of debt and equity securities, fairness opinions, and other strategic and financial advisory assignments. To learn more about Stonebridge, please visit our website at www.stonebrtech.com.