BETHESDA, Md., Sep. 7 /PRNewswire/ -- American Capital (Nasdaq:ACAS),
today announced a $7.3 million investment in subordinated debt with warrants and redeemable preferred stock of TransCore Holdings. The investment was made as part of a buyout of the business sponsored by management and KRG Capital Partners. TransCore's employees will also have a continuing interest in the company, owning over 32% of the company. Stratford Capital participated with American Capital in the subordinated debt and redeemable preferred stock investment. Prior to the buyout, the company was a wholly-owned subsidiary of Science Applications International Corporation (SAIC), the worlds largest closely held employee-owned business.
TransCore, founded in 1938, has an established market niche in virtually every segment of the toll collection and intelligent transportation systems industry. The company has integrated, installed or maintained more than 60% of the toll collecting systems in the U.S. market by pursuing contracts awarded by state and local government entities that are applying information technologies to manage their transportation assets. TransCore operates 60 offices in 22 states. The company was purchased by SAIC in February, 1994.
American Capital Principal Darin Winn commented, "TransCore has a dynamic management team and solid, long-standing customer relationships that have produced a sound business foundation. The company receives high praise for its project design and execution and continues to lead the market in all facets of quality, customer service and technological expertise. We are pleased to provide funding for this buyout, and we are also excited to be completing our first transaction with KRG Capital Partners."
"We turn a new chapter in the history of TransCore. This buyout will allow all of our employee-owners to translate our strengths through new applications of existing technologies to the private commercial market while continuing to provide solutions to the complex technological problems of the public transportation agencies and authorities," stated TransCore's President and CEO John Worthington.
Adam Blumenthal, President and COO of American Capital commented, "In the last two weeks we have completed two very important transactions which speak to the heart, soul and mission of American Capital. The first was Dixie Trucking, which allowed an entrepreneur to fulfill his dream of buying a company and further demonstrates American Capital's expertise in the buyout arena. SAIC is one of the country's largest employee-owned companies and its philosophy has permeated TransCore and its new group of employee-owners. We look forward to working with this top-notch, diversified group of professionals in a rapidly expanding market."
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American Capital is a buyout and specialty finance company with capital resources exceeding $360 million. American Capital invests in senior debt, subordinated debt and equity in middle market companies in need of capital for growth, acquisitions, ESOP buyouts, management buyouts, liquidity and restructurings. Companies interested in learning more about American Capital and our flexible financing should contact John Hoffmire, Vice President of Sales and Marketing, at (800) 248-9340 or visit our website at www.AmericanCapitalOnline.com or our shareholder site at www.ACASOnline.com.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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.
