Intel, Red Hat, SAP Fund Open-Source Risk Management FirmIntel, Red Hat, SAP Fund Open-Source Risk Management Firm

Intel Corp., Red Hat Inc. and SAP AG have joined other investors in a $12 million round of funding for Black Duck Software Inc., a compliance management software maker.

Black Duck, based in Waltham, Mass., sells applications that help businesses identify and manage software licenses. The company plans to use the Series B funding to help expand its sales, marketing and product development activities to capitalize on the demand for automating open-source software license compliance, Black Duck officials said Monday.

"Black Duck's business is driven by a 'perfect storm' of market trends that together position the company for rapid growth," Douglas A. Levin, chief executive of Black Duck, said in a statement. "Mainstream developers' use of open-source software, increased outsourcing and off-shoring, new regulatory mandates, and deeper due diligence in both licensing and acquisitions are focusing executive attention on internal controls relating to software IP (intellectual property) assets."

In addition, Black Duck and Intel said they have signed a technical and marketing cooperation agreement to help Black Duck optimize its software for use with 64-bit Intel Xeon processor-based servers.

Fidelity Ventures led the series B funding. Other investors include Flagship Ventures and General Catalyst Partners.

Black Duck raised $5 million in its series A round in July 2004.