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Company will apply Advanced Technology to Retail Loss Prevention
PEABODY, MA – May 27, 2003 – Security Source Inc., the retail industry leader in intelligent loss prevention solutions, today announced that it has secured $15 million in funding from Silicon Valley-based Technology Crossover Ventures (TCV). TCV is the leading provider of growth capital to late-stage private and public technology companies. This investment follows an initial round of funding from Ascent Venture Partners. The company also announced the acquisition of Reputation Technologies, an advanced analytics software and technology company, based in Somerville, Massachusetts.
Security Source, an eight year-old privately held firm is the loss prevention industry leader, addressing the $50 billion annual problem of inventory shrinkage for large retailers. Through its proprietary software, hardware, and business process outsourcing services, Security Source minimizes internal and external theft while giving senior executives the visibility and information needed to significantly increase their company’s profitability. The financing will fuel the company’s strong historical growth and will enable Security Source to continue enhancing comprehensive loss prevention solutions for its current base of leading retailers as well as for new customers. Security Source counts 180 of the nation’s top 200 retailers as customers, including Lowe’s, Hollywood Entertainment, and CVS.
TCV Venture Partner Henry Feinberg will join the Security Source board of directors. Feinberg is the former Chairman and CEO of Rand McNally with more than 25 years of Fortune 500 operating and transaction experience.
“Funding from an investor such as TCV is a real validation of Security Source’s business strategy and strong customer relationships with the leading retailers,” said David Guttadauro, founder and CEO of Security Source. “This investment gives Security Source the necessary capital to develop the leading-edge solutions needed to assist our customers in their efforts to stop retail theft.”
TCV Venture Partner, Henry Feinberg, added, “Security Source has a significant competitive advantage with its extensive customer base, innovative use of predictive analytic technology, and the ability to allow retailers to outsource their loss prevention function. We look for companies with strong management teams and sustainable market leadership, and Security Source fits that mold. The company’s management is a strategic partner for many of the industry’s largest retailers, and the company’s products and services are ‘best of breed’ in the loss prevention arena.”
Acquisition of Reputation Technologies
As Security Source launches its next phase of strategic growth, it will leverage the technology acquired from Reputation Technologies to advance its offerings in retail loss prevention and to strengthen its competitive advantage. Reputation Technologies’ expertise comes from combining business intelligence with patent-pending analytics to provide key performance metrics to decision makers at every level across the enterprise. In the retail space, this technology will be used to provide aggregation, correlation, reporting, and advanced analysis of loss prevention data throughout a retailer’s enterprise.
The Reputation Technologies’ offering is based on research and development generated at the Massachusetts Institute of Technology (MIT), and is based on advanced descriptive and predictive analytics, artificial intelligence, with patent-pending technology. With this acquisition, Security Source will enhance its solutions by being able to help retailers actually predict where their shortage (internal and external theft) will come from, and help prevent it, thereby creating operating efficiencies and enhancing profit.
Guttadauro comments, “This technology, combined with Security Source’s widely accepted and installed product base and best practices, will create a huge leap forward for our retail customers as they get a better grasp of where their shortage issues are, and how to prevent them. We’re very excited to offer this advanced technology to our customers.”
Several employees of Reputation Technologies will join Security Source including Chief Technology Officer Debra Gesimondo. As Security Source’s CTO, Gesimondo will be responsible for driving the technical vision and execution of the company’s product offerings. Gesimondo has a broad technical background encompassing distributed object oriented applications, mathematics and analytical software, and operating system level development.
The combined Company is headquartered in Peabody, Massachusetts.
About TCV
TCV is a leading provider of growth capital to technology companies, providing funds to expansion, late-stage private, and public companies. Founded in 1995, with more than $2.5 billion under management, the firm has eleven partners and is headquartered in Palo Alto, California.
About Security Source
Security Source is helping the nation’s retailers combat the $50 billion problem of inventory shortage. As the retail industry’s leading provider of intelligent loss prevention solutions, Security Source delivers solutions and best practices with the ability to: aggregate data; analyze information; predict where theft will occur; and prevent it from happening – saving leading retailers millions of dollars each year. The company’s comprehensive product line includes over 200 products, and it counts 180 of the top 200 U.S. retailers as its customers. To learn more, visit: www.securitysource.com.
Source: Security Source, Inc.
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