UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
Daleen Technologies, Inc.
--------------------------------------------------------------------------------
(Name of Issuer)
Common Stock
--------------------------------------------------------------------------------
(Title of Class of Securities)
23427N 10-4
--------------------------------------------------------------------------------
(CUSIP Number)
David J. Schwartz, Esq. Martha D. Vorlicek
Debevoise & Plimpton HarbourVest Partners, LLC
919 Third Avenue One Financial Center
New York, NY 10022 Boston, MA 02111
(212) 909-6000 (617) 348-3707
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Persons
Authorized to Receive Notices and Communications)
October 3, 2002
--------------------------------------------------------------------------------
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box [ ].Note: Schedules filed in paper format shall include a
signed original and five copies of the schedule, including all exhibits. See
Section 240.13d-7 for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
(Continued on the following pages)
Page 1 of 15
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(1) NAMES OF REPORTING PERSONS HarbourVest Partners, LLC
I.R.S. IDENTIFICATION NOS. I.R.S. No. 04-3335829
OF ABOVE PERSONS (ENTITIES ONLY)
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [_]
(b) [_]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) SOURCE OF FUNDS
00
--------------------------------------------------------------------------------
(5) CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e)
--------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
(7) SOLE VOTING POWER
NUMBER OF
20,520,679*
SHARES -----------------------------------------------------------------
(8) SHARED VOTING POWER
BENEFICIALLY
OWNED BY -0-
-----------------------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING
20,520,679*
PERSON
-----------------------------------------------------------------
WITH (10) SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
20,520,679
--------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
--------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
51.0%
--------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON
IA
--------------------------------------------------------------------------------
--------------
*See Item 4.
Page 2 of 15
--------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSONS D. Brooks Zug
I.R.S. IDENTIFICATION NOS.
OF ABOVE PERSONS (ENTITIES ONLY)
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [_]
(b) [_]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) SOURCE OF FUNDS
00
--------------------------------------------------------------------------------
(5) CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e)
--------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
--------------------------------------------------------------------------------
(7) SOLE VOTING POWER
NUMBER OF
-0-
SHARES
-----------------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER
OWNED BY
20,520,679
EACH -----------------------------------------------------------------
(9) SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH -----------------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
20,520,679
--------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
20,520,679
--------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
--------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
51.0%
--------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
Page 3 of 15
--------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSONS Edward W. Kane
I.R.S. IDENTIFICATION NOS.
OF ABOVE PERSONS (ENTITIES ONLY)
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [_]
(b) [_]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) SOURCE OF FUNDS
00
--------------------------------------------------------------------------------
(5) CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e)
--------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
--------------------------------------------------------------------------------
(7) SOLE VOTING POWER
NUMBER OF
-0-
SHARES
-----------------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER
OWNED BY
20,520,679
EACH -----------------------------------------------------------------
(9) SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH -----------------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
20,520,679
--------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
20,520,679
--------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
--------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
51.0%
--------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
Page 4 of 15
--------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSONS HVP V-Direct Associates LLC
I.R.S. IDENTIFICATION NOS. I.R.S. No. 04-3349950
OF ABOVE PERSONS (ENTITIES ONLY)
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [_]
(b) [_]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
(5) CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e)
--------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
(7) SOLE VOTING POWER
NUMBER OF -0-
SHARES -----------------------------------------------------------------
(8) SHARED VOTING POWER
BENEFICIALLY
OWNED BY 5,068,063
-----------------------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING
-0-
PERSON
-----------------------------------------------------------------
WITH (10) SHARED DISPOSITIVE POWER
5,068,063
--------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,068,063
--------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
--------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
20.5%
--------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
Page 5 of 15
--------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSONS HVP VI-Direct Associates LLC
I.R.S. IDENTIFICATION NOS. I.R.S. No. 04-3464301
OF ABOVE PERSONS (ENTITIES ONLY)
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [_]
(b) [_]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
(5) CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e)
--------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
(7) SOLE VOTING POWER
NUMBER OF
-0-
SHARES
-----------------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER
OWNED BY
15,452,616
EACH -----------------------------------------------------------------
(9) SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH -----------------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
15,452,616
--------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
15,452,616
--------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
--------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
39.6%
--------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
Page 6 of 15
--------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSONS HarbourVest Partners V-
I.R.S. IDENTIFICATION NOS. Direct Fund L.P.
OF ABOVE PERSONS (ENTITIES ONLY) I.R.S. No. 04-3349952
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [_]
(b) [_]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
(5) CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e)
--------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
(7) SOLE VOTING POWER
NUMBER OF
-0-
SHARES
-----------------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER
OWNED BY
5,068,063
EACH -----------------------------------------------------------------
(9) SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH -----------------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
5,068,063
--------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,068,063
--------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
--------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
20.5%
--------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
Page 7 of 15
--------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSONS HarbourVest Partners VI-
I.R.S. IDENTIFICATION NOS. Direct Fund L.P.
OF ABOVE PERSONS (ENTITIES ONLY) I.R.S. No. 04-3464307
--------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [_]
(b) [_]
--------------------------------------------------------------------------------
(3) SEC USE ONLY
--------------------------------------------------------------------------------
(4) SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
(5) CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e)
--------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
(7) SOLE VOTING POWER
NUMBER OF
-0-
SHARES
-----------------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER
OWNED BY
15,452,616
EACH -----------------------------------------------------------------
(9) SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH -----------------------------------------------------------------
(10) SHARED DISPOSITIVE POWER
15,452,616
--------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
15,452,616
--------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
--------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
39.6%
--------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
Page 8 of 15
CONTINUATION PAGES TO SCHEDULE 13D
AMENDMENT NO. 2
This Amendment No. 2 to the Statement on Schedule 13D, filed by
HarbourVest Partners, LLC ("HarbourVest"), D. Brooks Zug ("Zug"), Edward W. Kane
("Kane"), HVP V-Direct Associates LLC ("Associates V"), HarbourVest Partners
V-Direct Fund L.P. ("Fund V"), HVP VI-Direct Associates LLC ("Associates VI"),
and HarbourVest Partners VI-Direct Fund L.P. ("Fund VI") (together the
"Reporting Persons"), relates to the Common Stock of Daleen Technologies, Inc.,
a Delaware corporation (herein referred to as "Daleen" or "Issuer"), and further
supplements and amends the Statement on Schedule 13D originally filed by each of
the Reporting Persons, other than Associates V and Fund V, on June 16, 2001, as
amended by Amendment No. 1 to the Statement on Schedule 13D, dated August 20,
2001 (the "Schedule 13D"). With respect to Associates V and Fund V, this
Amendment No. 2 to the Statement on Schedule 13D supersedes in its entirety the
Statement on Schedule 13G filed on February 14, 2000.
Item 2. Identity and Background.
The first paragraph of Item 2(a) is amended and restated to read in its
entirety as follows:
(a) This Statement on Schedule 13D is filed by HarbourVest Partners,
LLC ("HarbourVest"), D. Brooks Zug ("Zug"), Edward W. Kane ("Kane"), HVP
V-Direct Associates LLC ("Associates V"), HarbourVest Partners V-Direct Fund
L.P. ("Fund V"), HVP VI-Direct Associates LLC ("Associates VI"), and HarbourVest
Partners VI-Direct Fund L.P. ("Fund VI") (together the "Reporting Persons").
The remainder of Item 2(a) and Items 2(b)-2(f) are supplemented by the
addition of the following:
HarbourVest is the sole managing member of Associates V.
Associates V is the sole general partner of Fund V.
(b) The business address for Associates V and Fund V is One Financial
Center, 44th Floor, Boston, MA 02111.
(c) Associates V is the sole general partner of Fund V. Fund V is a
private investment fund. The business address for these entities is stated in
Item 2(b) above.
(d) and (e) During the last five years, neither Associates V nor Fund V
has been either (i) convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) or (ii) a party to a civil proceeding of a
judicial or administrative body of a competent jurisdiction and as a result of
such proceeding was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting activities subject to, federal or state
securities laws or finding any violation of such laws.
Page 9 of 15
(f) Associates V is a Delaware limited liability company; Fund V is a
Delaware limited partnership.
Item 4. Purpose of Transaction.
Item 4 is supplemented by the addition of the following:
Daleen entered into an Asset Purchase Agreement (the "Asset Purchase
Agreement"), dated October 7, 2002, among Daleen, Daleen Solutions, Inc., a
Delaware corporation and a wholly-owned subsidiary of Daleen ("Acquisition
Sub"), and Abiliti Solutions, Inc., a Missouri corporation ("Abiliti"), to
purchase the goodwill and substantially all of the assets of Abiliti for
11,492,136 shares of Daleen Common Stock, 115,681 shares of Series F Preferred
Stock, and warrants to acquire an additional 5,666,069 shares of Common Stock,
with an exercise price of $0.906 per share, plus the assumption of certain
specified liabilities. In a separate but related transaction, Daleen entered
into an Investment Agreement (the "Investment Agreement") with Behrman Capital
II, L.P., a Delaware limited partnership ("Behrman") and Strategic Entrepreneur
Fund II, L.P., a Delaware limited partnership ("SEF", together with Behrman, the
"Behrman Entities"), pursuant to which the Behrman Entities agreed to invest
approximately $5 million in Daleen for consideration consisting of 10,992,136
shares of Common Stock, 115,681 shares of Series F Preferred Stock, warrants to
purchase an additional 5,666,069 shares of Common Stock at an exercise price of
$0.9060 per share and warrants to purchase an additional 500,000 shares of
Common Stock at an exercise price of $0.17 per share (the "Investment"). The
consummation of the Investment is conditioned upon the simultaneous closing of
the transactions contemplated by the Asset Purchase Agreement. Certain
capitalized terms used herein and not otherwise defined shall have the meanings
assigned such terms in the Asset Purchase Agreement, the Investment Agreement,
the Voting Agreement and the Supplemental Voting Agreement.
The execution and delivery of the Asset Purchase Agreement was
conditioned upon the execution and delivery by certain stockholders of Voting
Agreements with Abiliti. In connection therewith, on October 3, 2002, Fund V and
Fund VI (individually, a "Stockholder" and together, the "Stockholders")
entered into a Voting Agreement with Abiliti whereby they agreed to vote all of
their Shares (i) in favor of the Purchase, the Investment, and the other
Contemplated Transactions and Daleen Proposals, including, among other things,
an amendment to Daleen's Certificate of Incorporation to increase the authorized
number of shares of preferred stock and Series F Preferred required to
consummate the Purchase and the Investment and (ii) against (a) approval of any
proposal made in opposition to or in competition with the transactions
contemplated by the Asset Purchase Agreement, (b) any merger, consolidation,
sale of assets, business combination, share exchange, reorganization or
recapitalization of Daleen or any of its subsidiaries, with or involving any
party other than as contemplated by the Asset Purchase Agreement, (c) any
liquidation or winding up of Daleen, (d) any extraordinary dividend by Daleen,
(e) any change in the capital structure of Daleen (other than pursuant to the
Asset Purchase Agreement) and (f) any other action that may reasonably be
expected to impede, interfere with, delay, postpone or attempt to discourage the
consummation of the Purchase or any other Contemplated Transaction or result in
a breach of any of the covenants, representations, warranties or other
obligations or
Page 10 of 15
agreements of Daleen under the Asset Purchase Agreement which would materially
and adversely affect Abiliti or Daleen or their respective abilities to
consummate the Purchase or any other Contemplated Transaction.
Under the Voting Agreement, each Stockholder agreed to grant to each of
the President and Secretary of Abiliti a proxy to vote such Stockholder's Shares
in accordance with the Voting Agreement. In addition, each Stockholder agreed
not to transfer any of such Shares (except under specified circumstances) enter
into any voting agreement with any person or entity with respect to any of the
Shares, grant any person or entity any proxy (revocable or irrevocable) or power
of attorney with respect to any of the Shares, deposit any of the Shares in a
voting trust or otherwise enter into any agreement or arrangement with any
person or entity limiting or affecting such Stockholder's legal power, authority
or right to vote the Shares in favor of the Purchase, Investment or Contemplated
Transactions.
The execution and delivery of the Investment Agreement was further
conditioned upon the execution and delivery of a Supplemental Voting Agreement,
dated October 7, 2002, among Fund V, Fund VI, Abiliti, and the Behrman Entities,
whereby Fund V and Fund VI committed to vote, at the 2003 annual meeting of the
stockholders, in favor of the election as Class I Directors of Daleen of two
individuals to be designated by Behrman, and Abiliti and Behrman committed to
vote in favor of the election as a Class I Director of Daleen of one individual
to be designated by Fund V and Fund VI. Under the Supplemental Voting Agreement,
each Stockholder agreed to grant to each of the Behrman Entities a proxy to vote
such Stockholder's Shares in accordance with the Supplemental Voting Agreement.
In addition, each Stockholder agrees not to transfer such Shares (except under
specified circumstances).
Except as described herein, the Reporting Persons have no present plans
or proposals that relate to or would result in any of the actions described in
Item 4(a) through (j) of Schedule 13D.
All references to, and summaries of the Asset Purchase Agreement,
the Investment Agreement, the Voting Agreement and the Supplemental Voting
Agreement in this Schedule 13D are qualified in their entirety by reference to
such documents, the full text of which is filed as Exhibits 9, 10, 11 and 12
hereto, respectively, and which Exhibits are incorporated herein by reference.
Item 5. Interest in Securities of the Issuer.
Item 5(a) is amended in its entirety to read as follows:
(a) HarbourVest, as the result of its position as the sole managing
member of Associates V and Associates VI, and Zug and Kane, as the result of
their positions as managing members of HarbourVest, may each be deemed to
beneficially own an aggregate of 20,520,679 shares of Common Stock, or 51.0% of
Common Stock currently outstanding (based on 23,532,081 shares of Common Stock
outstanding as of August 5, 2002, as reported by the Issuer in its Form 10Q
filed with the Securities and Exchange Commission on August 12, 2002), as a
result of their beneficial ownership of:
Page 11 of 15
(i) 5,068,063 shares of Common Stock, assuming exercise of a Warrant
for 1,250,000 shares of Common Stock, held by Fund V; and
(ii) 15,452,616 shares of Common Stock, assuming conversion of
90,139 shares of Series F Preferred (at a Series F Preferred conversion price of
$0.9060 per share) into 11,037,548 shares of Common Stock and exercise of the
Series F Warrants for 36,056 shares of Series F Preferred and the conversion of
such 36,056 shares of Series F Preferred (at a Series F Preferred conversion
price of $0.9060 per share) into 4,415,068 shares of Common Stock, held by Fund
VI.
Kane and Zug disclaim beneficial ownership over any of the reported
securities which they may be deemed to beneficially own, except to the extent of
their pecuniary interest therein.
Associates V, as the result of its position as the sole general partner
of Fund V, and Fund V, as record and ultimate owner of shares of Common Stock
and a Warrant, may each be deemed to beneficially own 5,068,063 shares of Common
Stock, assuming exercise of Warrants for 1,250,000 shares of Common Stock, or
20.5% of Common Stock currently outstanding.
Associates VI, as the result of its position as the sole general
partner of Fund VI, and Fund VI, as record and ultimate owner of the Series F
Preferred and Series F Warrants, may be deemed to beneficially own 15,452,616
shares of Common Stock, or 39.6% of Common Stock currently outstanding, assuming
conversion of 90,139 shares of Series F Preferred (at a Series F Preferred
conversion price of $0.9060 per share) into 11,037,548 shares of Common Stock,
and exercise of the Series F Warrants for 36,056 shares of Series F Preferred
and the conversion of such 36,056 shares of Series F Preferred (at a Series F
Preferred conversion price of $0.9060 per share) into 4,415,068 shares of Common
Stock, held by Fund VI.
Item 5(b) is supplemented by the addition of the following:
(b) Associates V, as the result of its position as the sole general
partner of Fund V, and Fund V, as record and ultimate owner of Common Stock and
Warrants, may be deemed to share power to vote or direct the vote of and to
dispose of or to direct the disposition of 5,068,063 shares of Common Stock, or
20.5% of Common Stock currently outstanding, assuming conversion of a Warrant
for 1,250,000 shares of Common Stock, held by Fund V.
The ownership interests set forth in this Schedule 13D do not take into
account the transactions described in Item 4 above, each of which is subject to
the approval of the stockholders of the parties thereto and the satisfaction of
other closing conditions.
Item 6. Contracts, Arrangements, Understandings or Relationships with respect to
Securities of the Issuer.
Except as described in this Schedule 13D, none of the individuals or
entities named in Item 2 has any contracts, arrangements, understandings or
relationships (legal or
Page 12 of 15
otherwise) with each other or with any person with respect to any securities of
the Issuer, including but not limited to the transfer of any shares of Common
Stock, finder's fees, joint ventures, guarantees of profits, division of profits
or loss, or the giving or withholding of proxies.
Item 7. Material to be Filed as Exhibits
Exhibit 9. Asset Purchase Agreement, dated October 7, 2002, among Daleen
Technologies, Inc., Daleen Solutions, Inc., and Abiliti
Solutions, Inc. (incorporated herein by reference to Exhibit
99.1 to Current Report on Form 8-K filed by Daleen
Technologies, Inc. on October 11, 2002)
Exhibit 10. Investment Agreement, dated October 7, 2002, by and between
Daleen Technologies, Inc. and the investors named therein
(incorporated herein by reference to Exhibit 99.2 to Current
Report on Form 8-K filed by Daleen Technologies, Inc. on
October 11, 2002)
Exhibit 11. Voting Agreement, dated October 3, 2002, between Abiliti
Solutions, Inc., HarbourVest Partners V - Direct Fund, L.P.
and HarbourVest Partners VI - Direct Fund, L.P. (filed
herewith)
Exhibit 12. Supplemental Voting Agreement, dated October 7, 2002, among
Abiliti Solutions, Inc., Behrman Capital II, L.P., Strategic
Entrepreneur Fund II, L.P., HarbourVest Partners V - Direct
Fund, L.P. and HarbourVest Partners VI - Direct Fund, L.P.
(filed herewith)
Exhibit 13. Joint Filing Agreement, dated October 16, 2002 (filed
herewith).
Page 13 of 15
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief,
I certify that the information set forth in this statement is true, complete and
correct.
Date: October 16, 2002
HARBOURVEST PARTNERS, LLC
By: /s/ Martha D Vorlicek
------------------
Name: Martha D. Vorlicek
Title: Member
/s/ Edward W. Kane
------------------------
Edward W. Kane
/s/ D. Brooks Zug
------------------------
D. Brooks Zug
HVP V-DIRECT ASSOCIATES LLC
By: HARBOURVEST PARTNERS, LLC
Its Managing Member
By: /s/ Martha D. Vorlicek
-----------------------
Name: Martha D. Vorlicek
Title: Member
HARBOURVEST PARTNERS V-DIRECT
FUND L.P.
By: HVP V-DIRECT ASSOCIATES LLC
Its General Partner
By: HARBOURVEST PARTNERS, LLC
Its Managing Member
By: /s/ Martha D Vorlicek
---------------------
Name: Martha D. Vorlicek
Title: Member
Page 14 of 15
HVP VI-DIRECT ASSOCIATES LLC
By: HARBOURVEST PARTNERS, LLC
Its Managing Member
By: /s/ Martha D Vorlicek
------------------
Name: Martha D. Vorlicek
Title: Member
HARBOURVEST PARTNERS VI-DIRECT
FUND L.P.
By: HVP VI-DIRECT ASSOCIATES LLC
Its General Partner
By: HARBOURVEST PARTNERS, LLC
Its Managing Member
By: /s/ Martha D Vorlicek
------------------
Name: Martha D. Vorlicek
Title: Member
Page 15 of 15