PALO ALTO, Calif., March 20, 2006 (PRIMEZONE) -- H&Q Asia Pacific ("H&QAP") today announced that it has successfully divested its holdings in GoRemote Internet Communications, Inc. ("GRIC"), a leading provider of secure, managed broadband network services to large and mid-size distributed enterprises and services providers worldwide. H&QAP's divestment in GRIC was completed as a result of iPass Inc.'s (Nasdaq:IPAS) acquisition of GRIC, which closed in February 2006.
After GRIC completed its IPO on Nasdaq in December 1999, H&QAP structured a successful PIPE investment into GRIC in 2002. In divesting its PIPE investment in GRIC as a result of the iPass acquisition, H&QAP realized a 3.1x exit return multiple. H&QAP funds had already realized returns from earlier investments in GRIC. Throughout its investment, H&QAP held two out of nine board seats and worked closely with senior management to grow revenues and increase business activity in greater China while improving net margins by shifting R&D and other operations to Asia. H&QAP also helped GRIC reposition itself as a managed services business following the strategic acquisition of Axcelerant in 2003.
"The acquisition by iPass validates GRIC's business model," said Dr. Ta-lin Hsu, Chairman of H&QAP. "A lot of GRIC's success and credit is attributable to founder Dr. Hong Chen, whose vision and leadership created the global GRIC platform, as well as the current management team, which helped GRIC successfully transition from a consumer-focused Internet service provider to a provider of leading managed services for global corporations. "We wish iPass well in their goal of extending their reach across all major segments of the global enterprise market for secure Internet connections for traveling and remote employees."
About H&Q Asia Pacific
H&Q Asia Pacific is a premier private equity firm that invests throughout the Asia-Pacific region. Founded in 1985 by Dr. Ta-lin Hsu as a joint venture with Hambrecht & Quist Group, H&QAP is today an independent private equity firm that has managed total assets of over $2 billion through offices in the Silicon Valley, Hong Kong, Manila, Seoul, Shanghai, Singapore, Taipei, and Tokyo. H&QAP invests in a variety of sectors, including technology, manufacturing, branded consumer products, financial services, media and real estate. For additional information, visit www.hqap.com.