Manufacturing software maker IQMS Inc. is paying company founders Randall and Nancy Flamm $38.6 million to buy shares they hold in the company, according to a July 23 financial filing.
The Paso Robles, Calif.-based company in August 2014 took on its first institutional investors, Technology Crossover Ventures and Banneker Partners.
“The filing portends good and exciting news for IQMS and the industry and we'll have more to say,” said Chief Marketing Officer Steve Bieszczat, who then declined additional comment.
Shortly after TCV and Banneker invested in IQMS, in September 2014, the company also reported to the Securities and Exchange Commission that it was paying $14.8 million to Randall Flamm, the company's president and CEO.
The SEC filings do not provide details on the payouts and it's not clear what the relationship between the two filings is.
The July 23 SEC filing describes the $38 million as “proceeds to be used to repurchase stock from related persons (Randall Flamm and Nancy Flamm).”
The Flamms founded IQMS in 1989 and have overseen rapid growth, with the company making the Inc. magazine 5000 list of the fastest growing privately held U.S. companies for the last four years.
The company makes ERP and other software for the manufacturing industry, with a presence in the plastics industry.
At the time of the TCV and Banneker investments, the companies said in a joint statement that the Flamms “will retain a substantial ownership position in the company.”
Since the TCV and Banneker investments, IQMS has changed its senior executive ranks, including bringing in a new chief financial officer and a new chief marketing officer.
TCV is headquartered in Palo Alto, Calif., and said it has raised nearly $10 billion in capital and invested in more than 200 companies, including Facebook, Fandango, Spotify and Zillow. San Francisco-based Banneker is a private equity firm focused on software and tech businesses.
The companies said they made the investment to provide funds for growth and said IQMS had a “remarkable franchise” in the ERP software segment.
