|American Capital Invests $90 Million in Leading Business-to-Business Solutions Provider|
Bethesda, MD - December 13, 2005 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $90 million in the recapitalization of Inovis International Inc., a leading provider of business-to-business (B2B) software and services. A portion of the proceeds of the investment will be used for a shareholder distribution. American Capital's investment takes the form of a senior term B loan. A syndicate led by Wells Fargo Foothill is providing a revolving credit facility and investing in a senior term A loan. Golden Gate Capital and Cerberus Capital Management LP are the majority owners of Inovis.
"We are delighted to work for the first time with Golden Gate Capital and Cerberus Capital Management, two premier private equity sponsors, and support their recapitalization of Inovis," said American Capital Regional Managing Director Darin Winn. "This investment establishes our 19th and 20th new private equity sponsor relationships worldwide this year. Our growing reputation among private equity firms allows us to take advantage of exciting opportunities to invest in excellent portfolio companies with competitive market positions and highly stable and recurring core revenue streams, such as Inovis."
American Capital has invested over $3.4 billion in the last twelve months, over $2.9 billion year to date and over $740 million quarter to date. These amounts do not include American Capital's unfunded equity commitment to its affiliate European Capital. For more information about American Capital's portfolio, click here.
"Inovis is a leading provider of mission-critical business-to-business software and services, serving a large customer base of over 20,000 businesses with remarkably high retention rates," said American Capital Vice President Natasha Volyanskaya. "Inovis' unified, modern and highly reliable solutions, combined with its significant capital resources, are key competitive advantages that have allowed Inovis to continue to increase its market share of the electronic data interchange market and positioned it for continued strong growth."
Headquartered in Alpharetta, GA, Inovis is a leading provider of B2B solutions for global trading relationships. With more than 20 years of experience, Inovis enables collaborative business processes and solves the B2B integration challenge for more than 20,000 customers and their trading partners. The Company's customers include small to mid-sized businesses as well as multinational corporations. Inovis' comprehensive line of B2B software and services help companies speed transaction flows, synchronize product information and improve supply chain processes
"This is our first time working with American Capital and we were impressed with their demonstrated ability to work quickly and efficiently to bring this transaction to a rapid close. They surpassed our expectations in both speed to closing and flexibility throughout the transaction process," said Golden Gate Capital Principal Rajeev Amara. "American Capital's strong financial backing of Inovis' recapitalization provides the necessary capital to strengthen the Company's balance sheet as it moves forward with its growth plans."
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $7 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to private and small public companies and through its asset management business is a manager of debt and equity investments in private companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.
As of November 30, 2005, American Capital shareholders have enjoyed a total return of 431% since the Company's IPO - an annualized return of 22%, assuming reinvestment of dividends. American Capital has paid a total of $868 million in dividends and paid or declared $19.08 dividends per share since its August 1997 IPO at $15 per share.
Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Senior Vice President, Business Development, at (800) 248-9340, or visit our website.
ABOUT GOLDEN GATE CAPITAL
ABOUT CERBERUS CAPITAL MANAGEMENT
SOURCE: American Capital Ltd.
Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.
This press release contains forward-looking statements. The statements regarding expected results of American Capital are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
This announcement is neither an offer to sell nor a solicitation to buy securities.
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