PlumTree Partners Announces Investment in P2P Provider BirchStreet Systems

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) September 9, 2009 -- PlumTree Partners, a Dallas-based private investment firm that focuses on middle market technology-enabled business services companies co-founded by Jeff Rich, former CEO of Affiliated Computer Services, and Todd Furniss, former President and COO of Everest Group, announced their investment in BirchStreet Systems, the leading provider of e-procurement software as a service to the hospitality industry. With offices in Dallas, Newport Beach, California, and India, BirchStreet was established in 2001, and is led by CEO, John F. Davis, III.

In addition to its investment of growth capital, PlumTree Partners will serve as a resource to BirchStreet and its leadership team in strategy, sales and operations. PlumTree will also serve as BirchStreet’s capital partner moving forward, providing a platform for more aggressive pursuit of sales opportunities and its extension of service offerings. Investment details were not disclosed.

“In such a rapidly growing sector, we believe that BirchStreet’s value proposition is unique and very timely. Helping customers manage cost, quality and compliance creates very identifiable savings. Good management demands these kinds of controls at all times, but particularly in difficult economic times,” said Jeff Rich, Managing Director. ”With more than 2,000 hotels and restaurants already using its purchasing technology, BirchStreet has proven to satisfy those needs.”

BirchStreet CEO John F. Davis III, noted, “I’ve known Jeff Rich and Todd Furniss to be insightful thought partners with extensive contacts. As industry experts with remarkable successes and deep experience, they have already brought significant value to BirchStreet by helping me and my colleagues think through a number of issues from the most strategic to the most tactical. What might otherwise require weeks or months of detailed research, Jeff and Todd can frequently solve in minutes.”

“With so much market opportunity, John Davis is the right person to be leading this organization given his depth of hospitality industry knowledge, reputation, and contacts. This is the type of investment we like to make given its visionary leadership, market positioning and growth profile,” said Todd Furniss, PlumTree Managing Director. “We look forward contributing to John, his team and our fellow shareholders to advance a model of consistent growth and excellent customer service.”


About BirchStreet Systems

As a recognized leader in the hospitality market, BirchStreet provides its Web-based e-procurement platform to restaurants, country clubs and some of the world’s largest hotel companies including Hilton Hotels, Hyatt Hotels, InterContinental Hotels & Resorts, Omni Hotels, Interstate Hotels and Resorts, and Carlson Hospitality. Currently, more than 2,000 hotels and restaurants in 25 countries utilize BirchStreet to access and manage more than 130,000 suppliers, processing more than $1.5 billion in purchasing transactions annually.

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