Bethesda, MD - February 5, 2004 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that it has completely exited its investment in MATCOM International Corporation. The exit results from the sale of MATCOM to SI International Inc. (Nasdaq: SINT), an information technology, network solutions, and systems engineering (IT) company. American Capital received a total of $15 million from the transaction to repay its senior debt and subordinated debt and purchase its common stock warrants, resulting in a $0.6 million realized gain and a 24% compounded annual rate of return on its investment. The 24% return includes the $0.6 million realized gain and the interest and fees received over the life of American Capital's investment in the company. The amount realized by American Capital exceeded the third quarter 2003 valuation of the investment by $0.6 million.
In November 2002 American Capital invested $15 million in MATCOM, a defense contractor and provider of IT and engineering services to various military and civilian agencies of the Federal Government, including the Department of Defense, U.S. Air Force, Department of Homeland Security, Federal Retirement Thrift Investment Board, National Institute of Health, and Department of Justice. Proceeds from American Capital's investment were used to support a strategic add-on acquisition and to refinance a portion of MATCOM's existing debt. Prior to the sale to SI, MATCOM was owned by DFW Capital Partners, Westbuty Equity Partners, and the management of MATCOM.
For more information about American Capital's MATCOM investment click here.
For a chart detailing American Capital capital gains and losses click here.
For a chart listing American Capital's exited portfolio companies click here.
As of January 31, 2003, American Capital shareholders have enjoyed a total return of 273% since the Company's IPO -- an annualized return of 23%, assuming reinvestment of dividends. American Capital has paid a total of $13.12 per share in dividends since its August 1997 IPO.
Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Principal, 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 or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
