UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
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)
December 20, 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 13
(1) Names of Reporting Persons HarbourVest Partners, LLC
I.R.S. Identification I.R.S. No. 04-3335829
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 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
--------------------------------------------------------------------------------
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 31.4%
--------------------------------------------------------------------------------
(14) Type of Reporting Person IA
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* See Item 4.
Page 2 of 13
(1) Names of Reporting Persons D. Brooks Zug
I.R.S. Identification
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 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 31.4%
--------------------------------------------------------------------------------
(14) Type of Reporting Person IN
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Page 3 of 13
(1) Names of Reporting Persons Edward W. Kane
I.R.S. Identification
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 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 31.4%
--------------------------------------------------------------------------------
(14) Type of Reporting Person IN
--------------------------------------------------------------------------------
Page 4 of 13
(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 8.3%
--------------------------------------------------------------------------------
(14) Type of Reporting Person PN
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Page 5 of 13
(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 25.2%
--------------------------------------------------------------------------------
(14) Type of Reporting Person PN
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Page 6 of 13
(1) Names of Reporting Persons HarbourVest Partners V-Direct Fund L.P.
I.R.S. Identification I.R.S. No. 04-3349952
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 8.3%
--------------------------------------------------------------------------------
(14) Type of Reporting Person PN
--------------------------------------------------------------------------------
Page 7 of 13
(1) Names of Reporting Persons HarbourVest Partners VI-Direct Fund L.P.
I.R.S. Identification I.R.S. No. 04-3464307
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 25.2%
(14) Type of Reporting Person PN
Page 8 of 13
CONTINUATION PAGES TO SCHEDULE 13D
AMENDMENT NO. 3
This Amendment No. 3 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, and Amendment No.
2 filed by each of the Reporting Persons, including Associates V and Fund V,
dated October 24, 2002.
Item 4. Purpose of Transaction.
Item 4 is supplemented by the addition of the following:
On December 20, 2002, the transactions contemplated by the Asset
Purchase Agreement were consummated. Abiliti sold to Acquisition Sub the
goodwill and substantially all of its assets for consideration consisting of
11,406,284 shares of Common Stock, 115,681 shares of Series F Preferred Stock,
and Warrants to purchase 5,666,069 shares of Common Stock, with an exercise
price of $0.906 per share, plus the assumption of certain specified liabilities
(the "Asset Purchase"). Each share of Series F Preferred Stock is immediately
convertible into 122.4503 shares of Common Stock. Accordingly, the securities
received by Abiliti represented approximately 47.96% of the shares of Common
Stock outstanding after giving effect to the consummation of the Asset Purchase
and of the transactions contemplated by the Investment Agreement.
In addition, upon consummation of the Asset Purchase on December 20,
2002, the Voting Agreement terminated in accordance with its terms. The
Supplemental Voting Agreement will remain in effect through the 2003 annual
meeting of the stockholders of Daleen.
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 was filed on October 24, 2002 as Exhibits 9,
10, 11 and 12 to Amendment No. 2 to the Statement on Schedule 13D, and which are
incorporated herein by reference.
Item 5. Interest in Securities of the Issuer.
Items 5(a), (b) and (c) are amended in their 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
Page 9 of 13
of 19,270,679 shares of Common Stock, or 31.4% of Common Stock currently
outstanding (based on 45,847,865 shares of Daleen's Common Stock currently
outstanding following consummation of the transactions described in Item 4
above), 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 8.3%
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 25.2% 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:
Page 10 of 13
(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 shares 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.
(c) On September 12, 2002, the Warrant held by Fund V for the purchase
of 1,250,000 shares of Common Stock expired in accordance with its terms,
without payment of any consideration to Fund V.
Item 7. Material to be Filed as Exhibits
Exhibit 14. Joint Filing Agreement, dated January 2, 2003 (filed herewith).
Page 11 of 13
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: January 2, 2003
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 12 of 13
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 13 of 13