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Venture Capital - Wednesday, January 31, 2007

Money From Fonts? Monotype Plans $135M IPO

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We don't like fonts. There are too many of them and they look the same to us. So its disturbing to learn that a font maker called Monotype, owner of fonts.com, is doing an IPO.

Monotype offers a library of 9K typefaces with compression, text layout, and printer drivers. Its chief competitors are Adobe Systems and Bitstream as well as FreeType, an open source group.

Alright, so they don't make a lot of cash. For the nine months ended September 30, Montotype posted net income of $3.8M on revenue of $60.8M versus net income of $5.8M on revenue of $54.6M in the prior year.

TA Associates owns 81.2% of Monotype. The IPO filing on Friday comes less than 3 years after TA bought a majority stake in Agfa Monotype for $194M.



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