American Capital Completes Sale of People Media, Receives $57 Million in Cash Proceeds and Realizes $15 Million Gain
17 7월 2009 - 3:24AM
PR Newswire (US)
BETHESDA, Md., July 16 /PRNewswire-FirstCall/ -- American Capital
Ltd. (NASDAQ:ACAS) announced that, on July 13, it completed the
sale of its portfolio company People Media to Match.com, an
operating business of IAC. American Capital received $57 million in
cash proceeds and realized a gain of $15 million in the third
quarter from the transaction. American Capital's compounded annual
rate of return was 30%, including dividends, interest and fees
earned over the life of the investment. Including investments in
People Media by American Capital's affiliated funds under
management, the inception to date realized gains were $26 million
and the compounded annual rate of return was 35%. The proceeds
received by American Capital were greater than the first quarter
2009 valuation of the investment by $6 million, or 11%. American
Capital and its affiliates invested $56 million in a senior term
loan, senior subordinated debt and preferred equity in People
Media, formerly Zencon Technologies LLC, in May 2007. Including the
sale, American Capital received 2.7 times its equity investment,
and realized a compounded annual rate of return of 76% over the
life of its equity investment, including dividends and fees. "The
sale of People Media is an excellent outcome for American Capital,
creating strong returns for American Capital and its funds under
management," said Miles Arnone, Managing Director, Technology
Group. "Throughout our two year investment, the company has
achieved significant objectives, including launching a partnership
with AOL Personals, which have assisted in solidifying its leading
position in the targeted online dating market. As an even stronger
company now, we believe People Media will continue to thrive under
the leadership of its new owner." People Media is the leading
provider of targeted online dating communities. The company's 27
focused dating websites enable adults to meet online in a safe and
convenient setting and participate in a community, become friends,
date, establish long-term relationships or marry. The company's
websites are focused on specific demographic groups and include
BlackPeopleMeet.com, SingleParentMeet.com, SeniorPeopleMeet.com,
BBPeopleMeet.com and LDSPlanet.com, with a combined 255,000 paying
subscribers. "Since 2007, the American Capital Technology Group has
worked closely with People Media and the management team to
transform the company from an entrepreneurially run business to an
enterprise with improved controls, infrastructure and growth
prospects," said Will Rudat, Vice President, Technology Group.
Since American Capital's August 1997 IPO through the first quarter
of 2009, the company has earned a 16% compounded annual return,
including interest, dividends, fees and net gains, on 255
realizations of senior debt, subordinated debt and equity
investments, totaling $11 billion of committed capital. These
realizations represent 48% of all amounts invested by American
Capital since its August 1997 IPO. Proceeds from these realizations
exceeded the total associated prior quarter valuation of the
investments by less than 1%. American Capital earned a 29%
compounded annual return on the exit of its equity investments,
including dividends, fees and net gains. For a chart showing
American Capital's exited portfolio companies, please go to
http://www.americancapital.com/our_portfolio/exited.html. ABOUT THE
AMERICAN CAPITAL TECHNOLOGY GROUP The American Capital Technology
Group invests in early, middle and late stage technology companies.
With the flexibility to invest in equity and debt from $5 million
to $400 million, the American Capital Technology Group can provide
its capital base and domain expertise to build category-leading,
technology companies. These companies generally are mature, high
performing, cash flowing companies with excellent growth rates.
They operate across many industry sectors and are driven by a broad
range of technologies. The Technology Group extends American
Capital's existing technology investment business by investing in
earlier stage technology companies. ABOUT AMERICAN CAPITAL American
Capital is a publicly traded private equity firm and global asset
manager. American Capital, both directly and through its asset
management business, originates, underwrites and manages
investments in middle market private equity, leveraged finance,
real estate and structured products. Founded in 1986, American
Capital has $11 billion in capital resources under management(1)
and ten offices in the U.S., Europe and Asia. For further
information, please refer to http://www.americancapital.com/. (1)
As of March 31, 2009. 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. CONTACT: Miles Arnone, Managing
Director, Technology Group (508) 598-1100 Will Rudat, Vice
President, Technology Group (508) 598-1100 Jennifer Burke,
Corporate Communications (301) 968-9400 DATASOURCE: American
Capital Ltd. CONTACT: Miles Arnone, Managing Director, Technology
Group, +1-508-598-1100, or Will Rudat, Vice President, Technology
Group, +1-508-598-1100, or Jennifer Burke, Corporate
Communications, +1-301-968-9400 Web Site:
http://www.americancapital.com/
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