RealTime IT News

Accel Partners, KKR Form Financial Venture

Venture capital giant Accel Partners and private investment firm Kohlberg Kravis Roberts & Co. formed a new company Wednesday to integrate clients' online and offline assets.

Financial terms were not disclosed.

The new company, Accel-KKR Internet Co., will be composed of leading executives from brick-and-mortar and Internet businesses. The joint venture will also invest in companies looking to merge the Internet and physical assets and will provide them not only with capital but also with better access to management expertise and networking opportunities.

Accel and KKR agreed to provide equal amounts of initial funding to the joint venture. Late, other partners may be invited to participate in a second round of financing. Accel and KKR will each name three members to the new company's board of directors. Accel's Board members will be Jim Breyer, Arthur Patterson and Theresia Ranzetta. KKR will be represented by Henry Kravis, George Roberts, and Marc Lipschultz.

"We are creating a new kind of company uniquely suited to meeting the needs of businesses that seek to seamlessly integrate physical assets and online capabilities," said Henry Kravis, a founding partner of KKR. "The Internet has become an indispensable tool for all businesses, but many traditional bricks-and-mortar companies have not decided how best to enable their resources to capitalize on this opportunity. With our vast resources and network, we intend to help them do so."