|American Capital Invests $39 Million in Buyout of Elynx|
Bethesda, MD - December 21, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $39 million in the buyout of eLynx Ltd., the leading provider of secure electronic document delivery ("EDD") solutions to the mortgage industry. American Capital's investment takes the form of a revolving credit facility, senior term loan, senior and junior subordinated debt and redeemable preferred and common equity. eLynx management is also investing in equity. Post close, American Capital owns approximately 84% of eLynx on a fully diluted basis, with eLynx management owning the remaining balance.
"We are pleased to announce our 39th new portfolio company investment and 11th buyout of 2004," said American Capital COO Ira Wagner. "Our investment in eLynx demonstrates some of American Capital's key strengths: capability to conduct one-stop buyouts, expertise across various industries and ability to work with management teams to carry out an appropriate transaction."
American Capital has invested over $1.7 billion in the last twelve months, over $1.5 billion year to date and over $275 million quarter to date. For more information about American Capital's portfolio, click here.
"eLynx's strong cash flows, entrenched customer relationships and position as the industry standard for secure EDD solutions within the mortgage space make it an attractive investment. We are thrilled to have the opportunity to invest alongside eLynx's tremendous management team," said American Capital Principal Todd Wilson.
"eLynx is the clear market leader, serving a large, established customer base of top mortgage lenders," said American Capital Managing Director Robert Klein. "The Company offers a compelling value proposition by providing significant cost savings over traditional courier based delivery methods, enhanced regulatory compliance and increased business process efficiency. As several positive trends affect both the mortgage industry and the adoption of electronic delivery over the coming years, eLynx can look forward to significant growth opportunities in the mortgage space and other verticals within the financial services industry."
Founded in 1994, Cincinnati, OH-based eLynx was the first to develop a web-based EDD processing system that transmitted secure mortgage documents. The Company now provides secure EDD and electronic signatures to the mortgage industry through its web posting service ("WPS") and uSign™ products, respectively. WPS is constructed with proprietary code that enables clients to securely deliver electronic documents through the use of a common Web browser and save up to 75% of traditional paper delivery costs. In 2003, with the introduction of uSign™, eLynx became the first company to integrate e-signature capabilities into a commercially viable EDD solution. In addition, the Company has recently launched a new product, eLynx PRO, which provides a neutral, desktop platform that installs in minutes, captures documents from any application, interfaces with the user via a familiar email-like appearance and provides Web-based security.
eLynx serves over 100 customers, including six of the top 10 and 16 of the top 30 mortgage lenders. Selected top customers include Wells Fargo Home Mortgage, National City Mortgage, Golden West Financial, GreenPoint Mortgage, HSBC Mortgage and ditech.com. In 2003, the Company was named to Mortgage Technology's "Top 100 Mortgage Technology Vendors" list. In addition to its headquarters, the Company has two offsite data facilities in Chicago, IL and Atlanta, GA.
"American Capital proved to be the perfect investment partner, understanding our current needs and future goals," said eLynx President, CEO and Co-Founder Phil Huff. "Their backing will benefit eLynx as the demand for EDD services in the financial services industry continues to increase due to technological innovations, recent Federal legislation and continued security and functionality problems with email."
American Capital is a publicly traded buyout and mezzanine fund with capital resources of more than $4.8 billion. American Capital is an investor in and sponsor of management and employee buyouts, invests in private equity buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.
As of November 30, 2004, American Capital shareholders have enjoyed a total return of 299% since the Company's IPO - an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $583 million in dividends and paid or declared $16.03 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.
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.
This announcement is neither an offer to sell nor a solicitation to buy securities.
SOURCE: American Capital Ltd.www.americancapital.com