Intertech Lands $26M from Behrman –

ST. LOUIS – Intertech Management Group, a maker of software solutions, closed a $26.9 million growth capital investment in late December.

Behrman Capital led the equity financing, committing $26 million for an approximate 33% stake in the developer of billing and customer care software, said Managing Partner Grant Behrman. A strategic investor from the company’s first round made a small follow-on investment.

Jefferies & Co. of New York served as Intertech’s placement agent on the Series A convertible preferred offering.

Intertech has been selected as a partner in Microsoft’s active operational support system framework initiative and is a leader in Windows-NT-based billing and customer care software solutions to the communications industry. The company’s 25 customers include Williams Communications Group, Splitrock, Ameritech, Allegiance Telecom, GTE, IXC Communications and Atlas.

Intertech’s Network Strategies software supports long distance, competitive local exchange carriers and data services, and includes customer care, marketing, service delivery, data collection event processing, billing and accounts receivable.

“The company has based its software on the Windows-NT system, and we believe that is a more cost effective means of delivery than legacy systems,” Mr. Behrman said.

The company intends to use proceeds from the offering to develop its infrastructure and to look at geographic expansion. However, President David Wilson said funds will primarily go toward product development, in order to speed up implementation.

“It always depends on the customer, but we have set up fairly significant companies in 30 days,” Mr. Wilson said.

He added that, barring a new strategy, the funding should carry the company through an initial public offering some time in 2000.

Dennis Sisco and Bill Matthes will represent Behrman on Intertech’s board of directors.