|American Capital Announces Formation of Technology Group|
Bethesda, MD - February 20, 2006 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today plans to expand its investment activities in the technology sector with the opening of a Boston office led by Andy Fillat, Managing Director and Tony Abate, Managing Director. The company also anticipates futher expanding the team in the near future with a new office in California.
"After considerable due diligence and market research American Capital is developing a technology team to be led by Andy Fillat and Tony Abate, two of the best investors in the industry," said American Capital Chairman, President and CEO Malon Wilkus. "American Capital has invested approximately $900 million in 11 technology companies in its existing portfolio. These companies generally are mature, high performing, cash flowing companies with substantial EBITDA margins and excellent growth rates. They operate across many different industry sectors and are driven by a broad range of technologies. We anticipate Andy and Tony will expand our existing technology investment business by investing in earlier stage technology. Our low cost and permanent capital and extensive origination system with nine offices worldwide, including our ability to provide one-stop financing by funding senior debt, subordinated debt and equity, should provide us considerable competitive advantages as we expand our investments in technology."
Mr. Fillat was previously associated with Advent International Corp., a $10 billion global private equity firm, where he was a Managing Director specializing in communications and information technology related investments during his 16 years at the firm. He was the lead dealmaker for over 40 completed transactions in the U.S. and Europe, managed venture operations responsible for over 100 deals, and served on the firm's Executive Committee. He earned an SB and SM in computer science and electrical engineering from the Massachusetts Institute of Technology and an MBA from Harvard Business School.
Mr. Abate brings over 20 years of experience in the media and information technology fields. He has been a private equity investor the past 10 years, as a General Partner at Battery Ventures, one of the premier venture firms in the U.S. managing over $1.6 billion, and as Vice President at Whitney & Co., a venture and private equity partnership that dates to 1946. Before becoming an investor, Tony worked for McKinsey & Company and served as an officer in the U.S. Air Force. Mr. Abate holds a BSE in Electrical Engineering from Duke University and an MBA from Harvard Business School with honors.
"American Capital's franchise is well suited to the launch and establishment of a Technology Group," said American Capital Managing Director Gordon O'Brien. "In particular, the 22 person Operations Group will provide critical development assistance to early stage as well as mature technology companies."
"American Capital is a very strong platform for doing technology transactions because we can focus on the sectors and stages appropriate to the market cycles rather than limiting ourselves based on a fund's timing, size, or charter," said Mr. Fillat. "In addition, American Capital has one of the largest streams of investment opportunities in the industry. That, together with its deep capital, knowledge and research base will open up more transaction opportunities and allow us to address them faster and more thoroughly."
American Capital has invested approximately $900 million in 11 technology companies in its existing portfolio. They include $244 million in Mirion Technologies Inc., a global leader in radiation detection formed through the merger of American Capital's U.S. portfolio companies Global Dosimetry Solutions Inc. and Imaging and Sensing Technology Corporation with its French portfolio company; $114 million in DelStar Technologies Inc., a leading manufacturer of highly-engineered, thermoplastic nonwoven products used by OEMs in filtration, healthcare and industrial applications; $108 million in Futurelogic Inc., a leading designer and developer of customized small format embedded thermal printing solutions; $102 million in Bankruptcy Management Solutions, the leading provider of case management software, financial and other services to Chapter 7 bankruptcy trustees, Chapter 11 bankruptcy trustees and other fiduciaries; $90 million in the recapitalization of Inovis International Inc., a leading provider of business-to-business (B2B) software and services; $66 million inTyden Group Inc., a leading provider of global cargo security and product identification and traceability solutions; $65 million in Security Systems, the leading global provider of security solutions utilizing pioneering wireless tracking devices to protect currency from theft in banks, ATMs, safes and transport applications; $56 million in Unwired Technology LLC, a designer, marketer and supplier of wireless headphones for automotive entertainment systems; $50 million in Electro-Component Assembly Company, the leading firm specializing in the design, development and manufacturing of disposable tools used in the installation of pacemakers, defibrillators and other implantable medical devices; $39 million in eLynx, Ltd., a leading provider of secure electronic document delivery solutions to the mortgage industry; and $16 million in Wausau Financial Systems, a leading provider of fully-bundled software and hardware technology solutions for remittance and check processing.
ABOUT AMERICAN CAPITAL
As of January 31, 2006, American Capital shareholders have enjoyed a total return of 403% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $961 million in dividends and paid $19.11 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.
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 Strategies 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.
SOURCE: American Capital Ltd.www.americancapital.com