UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 4)*
Daleen Technologies, Inc.
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
23427N 10-4
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(CUSIP Number)
David J. Schwartz, Esq. Martha D. Vorlicek
Debevoise & Plimpton LLP 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)
May 7, 2004
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(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 14
(1) Names of Reporting Persons HarbourVest Partners, LLC
I.R.S. Identification I.R.S. No. 04-3335829
Nos. of Above Persons (entities only)
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(2) Check the Appropriate Box (a)
if a Member of a Group -------------------
(b)
-------------------
--------------------------------------------------------------------------------
(3) SEC Use Only
--------------------------------------------------------------------------------
(4) Source of Funds 00
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(5) Check if Disclosure of Legal
Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of
Organization Delaware
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Number of Shares (7) Sole Voting Power
Beneficially Owned 19,270,679
by Each Reporting
Person With ----------------------------------
(8) Shared Voting Power
-0-
----------------------------------
(9) Sole Dispositive Power
19,270,679
----------------------------------
(10) Shared Dispositive Power
-0-
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially
Owned by Each Reporting Person 19,270,679
--------------------------------------------------------------------------------
(12) Check if the Aggregate Amount
in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
(13) Percent of Class Represented
by Amount in Row 11 30.9%
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(14) Type of Reporting Person IA
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Page 2 of 14
(1) Names of Reporting Persons D. Brooks Zug
I.R.S. Identification
Nos. of Above Persons (entities only)
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(2) Check the Appropriate Box (a)
---------------------
if a Member of a Group (b)
---------------------
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(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.
--------------------------------------------------------------------------------
Number of Shares (7) Sole Voting Power
Beneficially Owned -0-
by Each Reporting
Person With ----------------------------------
(8) Shared Voting Power
19,270,679
-----------------------------------
(9) Sole Dispositive Power
-0-
----------------------------------
(10) Shared Dispositive Power
19,270,679
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially
Owned by Each Reporting Person 19,270,679
--------------------------------------------------------------------------------
(12) Check if the Aggregate Amount
in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
(13) Percent of Class Represented
by Amount in Row 11 30.9%
--------------------------------------------------------------------------------
(14) Type of Reporting Person IN
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Page 3 of 14
(1) Names of Reporting Persons Edward W. Kane
I.R.S. Identification
Nos. of Above Persons (entities only)
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(2) Check the Appropriate Box (a)
if a Member of a Group ---------------------
(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.
--------------------------------------------------------------------------------
Number of Shares (7) Sole Voting Power
Beneficially Owned -0-
by Each Reporting
Person With ----------------------------------
(8) Shared Voting Power
19,270,679
----------------------------------
(9) Sole Dispositive Power
-0-
----------------------------------
(10) Shared Dispositive Power
19,270,679
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially
Owned by Each Reporting Person 19,270,679
--------------------------------------------------------------------------------
(12) Check if the Aggregate Amount
in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
(13) Percent of Class Represented
by Amount in Row 11 30.9%
--------------------------------------------------------------------------------
(14) Type of Reporting Person IN
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Page 4 of 14
(1) Names of Reporting Persons HVP V-Direct Associates LLC
I.R.S. Identification I.R.S. No. 04-3349950
Nos. of Above Persons (entities only)
--------------------------------------------------------------------------------
(2) Check the Appropriate Box (a)
if a Member of a Group ---------------------
(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
--------------------------------------------------------------------------------
Number of Shares (7) Sole Voting Power
Beneficially Owned -0-
by Each Reporting
Person With ----------------------------------
(8) Shared Voting Power
3,818,063
----------------------------------
(9) Sole Dispositive Power
-0-
----------------------------------
(10) Shared Dispositive Power
3,818,063
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially
Owned by Each Reporting Person 3,818,063
--------------------------------------------------------------------------------
(12) Check if the Aggregate Amount
in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
(13) Percent of Class Represented
by Amount in Row 11 8.1%
--------------------------------------------------------------------------------
(14) Type of Reporting Person PN
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Page 5 of 14
(1) Names of Reporting Persons HVP VI-Direct Associates LLC
I.R.S. Identification I.R.S. No. 04-3464301
Nos. of Above Persons (entities only)
--------------------------------------------------------------------------------
(2) Check the Appropriate Box (a)
---------------------
if a Member of a Group (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
--------------------------------------------------------------------------------
Number of Shares (7) Sole Voting Power
Beneficially Owned -0-
by Each Reporting
Person With ----------------------------------
(8) Shared Voting Power
15,452,616
----------------------------------
(9) Sole Dispositive Power
-0-
----------------------------------
(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 24.8%
--------------------------------------------------------------------------------
(14) Type of Reporting Person PN
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Page 6 of 14
(1) Names of Reporting Persons HarbourVest Partners V-Direct
I.R.S. Identification Fund L.P.
Nos. of Above Persons (entities only) I.R.S. No. 04-3349952
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(2) Check the Appropriate Box (a)
---------------------
if a Member of a Group (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
--------------------------------------------------------------------------------
Number of Shares (7) Sole Voting Power
Beneficially Owned -0-
by Each Reporting
Person With ----------------------------------
(8) Shared Voting Power
3,818,063
----------------------------------
(9) Sole Dispositive Power
-0-
----------------------------------
(10) Shared Dispositive Power
3,818,063
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially
Owned by Each Reporting Person 3,818,063
--------------------------------------------------------------------------------
(12) Check if the Aggregate Amount
in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
(13) Percent of Class Represented
by Amount in Row 11 8.1%
--------------------------------------------------------------------------------
(14) Type of Reporting Person PN
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Page 7 of 14
(1) Names of Reporting Persons HarbourVest Partners VI-Direct
I.R.S. Identification Fund L.P.
Nos. of Above Persons (entities only) I.R.S. No. 04-3464307
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(2) Check the Appropriate Box (a)
---------------------
if a Member of a Group (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
--------------------------------------------------------------------------------
Number of Shares (7) Sole Voting Power
Beneficially Owned -0-
by Each Reporting
Person With ----------------------------------
(8) Shared Voting Power
15,452,616
----------------------------------
(9) Sole Dispositive Power
-0-
----------------------------------
(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 24.8%
--------------------------------------------------------------------------------
(14) Type of Reporting Person PN
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Page 8 of 14
CONTINUATION PAGES TO SCHEDULE 13D
AMENDMENT NO. 4
This Amendment No. 4 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 "Company"), 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, and
Amendments No. 2 and No. 3 filed by each of the Reporting Persons, including
Associates V and Fund V, on October 24, 2002 and January 3, 2003, respectively.
Items 4, 5, 6 and 7 are hereby amended, restated and supplemented.
Item 4. Purpose of Transaction.
On May 7, 2004, Daleen announced that agreements had been signed for
investments totaling $30 million into Daleen Holdings, Inc., a newly formed
holding company ("Daleen Holdings"). Daleen further announced that, subject to
stockholder approval, Daleen Holdings will simultaneously acquire Daleen and
Protek Telecommunications Solutions Limited, a private limited company organized
under the laws of England and Wales ("Protek"). Under the terms and conditions
of various operative agreements, Protek will be merged with and into Daleen.
On May 7, 2004, Fund V and Fund VI entered into a Voting Agreement with
Quadrangle Capital Partners LP, a Delaware limited partnership ("QCP"),
Quadrangle Select Partners LP, a Delaware limited partnership ("QSP") and
Quadrangle Capital Partners-A LP, a Delaware limited partnership ("QCP-A" and
collectively with QCP and QSP, "Quadrangle") (the "Voting Agreement"). Under the
terms of the Voting Agreement, Fund V and Fund VI agreed, among other things, to
grant an irrevocable proxy to Michael Huber, managing partner of QCP, to vote or
to cause to be voted, all of the shares of Common Stock and Series F Convertible
Preferred Stock, par value $0.01 per share, (the "Series F Preferred") owned of
record or beneficially by Fund V and Fund VI (a) in favor of the Agreement and
Plan of Merger and Share Exchange, dated as of May 7, 2004, by and among Daleen
Holdings, Parallel Acquisition, Inc., the Company, Behram Capital II, L.P., and
Strategic Entrepreneur Fund II, L.P. (the "Merger Agreement")(filed as Exhibit
15 hereto), the merger contemplated thereby, and each of the other transactions
and waivers contemplated by the Voting Agreement and the Merger Agreement and
(b) against (i) approval of any proposal made in opposition to or in competition
with the merger or any other transaction contemplated in the Voting Agreement
and the Merger Agreement, (ii) any merger, consolidation, sale of assets,
business combination, share exchange, reorganization or recapitalization of the
Company or any of its subsidiaries, with or involving any party other than as
contemplated by the Merger Agreement, (iii) any liquidation or winding up of the
Company, (iv) any extraordinary dividend by the Company, (v) any amendment of
the bylaws or certificate of incorporation of the Company and any change in the
capital structure
Page 9 of 14
of the Company (in each case other than pursuant to the Voting Agreement and the
Merger Agreement) and (vi) any other action that may reasonably be expected to
impede, interfere with, delay, postpone or attempt to discourage the
consummation of the merger or any other transaction contemplated in the Voting
Agreement and the Merger Agreement or result in a breach of any of the
covenants, representations, warranties or other obligations or agreements of the
Company under the Merger Agreement which would materially and adversely affect
QCP,QSP, QCP-A, or the Company or their respective abilities to consummate the
merger or any other transaction contemplated in the Voting Agreement and the
Merger Agreement.
The Voting Agreement terminates upon the earliest to occur of (i) the
consummation of the merger and related transactions contemplated thereby, (ii)
the termination of the Merger Agreement in accordance with its terms, or (iii)
September 30, 2004.
The foregoing descriptions of the Merger Agreement and Voting Agreement
are qualified in their entirety by reference to such Merger Agreement and Voting
Agreement, the full text of which are filed as Exhibits 15 and 16 hereto, and
which are incorporated herein by reference.
Item 5. Interest in Securities of the Issuer.
(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 19,270,679 shares of Common Stock, or 30.9% of Common Stock
currently outstanding (based on 46,929,372 shares of Common Stock currently
outstanding as of February 1, 2004, as reported by Issuer in Form 10K filed with
the Securities and Exchange Commission on March 18, 2004) as a result of their
beneficial ownership of:
(i) 3,818,063 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, may
each be deemed to beneficially own 3,818,063 shares of Common Stock or 8.1% 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
Page 10 of 14
be deemed to beneficially own 15,452,616 shares of Common Stock, or 24.8% 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.
(b) HarbourVest, as the result of its position as the sole managing member
of Associates V and Associates VI, may be deemed to have the sole power to vote
or direct the vote of and to dispose of or to direct the disposition of:
(i) 3,818,063 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, as the result of their position as managing members of
HarbourVest, may be deemed to share power to vote or direct the vote of and to
dispose of or to direct the disposition of:
(i) 3,818,063 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.
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, may be deemed
to share power to vote or direct the vote of and to dispose of or to direct the
disposition of 3,818,063 shares of Common Stock held by Fund V.
Associates VI, 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 share power to vote or direct the vote of and to dispose of or to
direct the disposition of 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.
Page 11 of 14
(c) On May 7, 2004, Fund V and Fund VI entered into a Voting Agreement
with Quadrangle. See Item 4 above.
(d) Not applicable.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer
Except as described above in Item 4 to this Schedule 13D, none of the
Reporting Persons has any contracts, arrangements, understandings or
relationships (legal or 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 15. Agreement and Plan of Merger and Share Exchange, dated as of
May 7, 2004, by and among Daleen Holdings, Inc., Parallel
Acquisition, Inc., Daleen Technologies, Inc., Behrman Capital II,
L.P., and Strategic Entrepreneur Fund II, L.P. (incorporated by
reference to Exhibit 10.2 to the Company's Quarterly Report on
Form 10-Q (File No. 0-27491) filed on May 17, 2004).
Exhibit 16. Voting Agreement, dated May 7, 2004, by and among HarbourVest
Partners VI - Direct Fund, L.P., HarbourVest Partners V - Direct
Fund, L.P., Quadrangle Capital Partners LP, Quadrangle Select
Partners LP and Quadrangle Capital Partners-A LP (incorporated by
reference to Exhibit 6 to the Statement on Schedule 13D filed by
Quadrangle Capital Partners LP (File No.005-57783) filed on
May 18, 2004).
Exhibit 17. Joint Filing Agreement, dated May 28, 2004 (filed herewith).
Page 12 of 14
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: May 28, 2004
HARBOURVEST PARTNERS, LLC
By: /s/ Martha D. Vorlicek
--------------------------------
Name: Martha D. Vorlicek
Title: Managing Director
/s/ Edward W. Kane
------------------------------------
Edward W. Kane
/s/ D. Brook 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: Managing Director
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: Managing Director
Page 13 of 14
HVP VI-DIRECT ASSOCIATES LLC
By: HARBOURVEST PARTNERS, LLC
Its Managing Member
By: /s/ Martha D. Vorlicek
-------------------------------------
Name: Martha D. Vorlicek
Title: Managing Director
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: Managing Director
Page 14 of 14