Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today that it has invested $20.5 million to finance the acquisition of Amtech, Inc. by TransCore, Inc. The investment consists of $20.0 million in the form of senior subordinated debt with detachable warrants and $0.5 million in the form of preferred stock. American Capital had previously invested $7.3 million in subordinated debt with warrants and redeemable preferred stock of TransCore in September 1999. KRG Capital Partners, a Denver-based private equity fund, will substantially increase its equity investment in the company in conjunction with the acquisition. Management and employees of Transcore will retain a large equity position in the combined company.
TransCore is the leading system integrator and operator in the toll collection and intelligent transportation systems industry. Amtech, a subsidiary of Unova, Inc. (NYSE: UNA) is a Dallas-based leading supplier of wireless data technologies, such as radio frequency identification devices (RFID) for intelligent transportation systems including highway, rail and parking applications. Amtech is also is a leading systems integrator and operator with a significant market presence in both the US and internationally.
"This is one of two follow-on transactions for American Capital and its portfolio companies this quarter," said American Capital President and COO Adam Blumenthal. "We look forward to being a continuing part of TransCore's growth. The combination of outstanding management, a highly incentivized employee base and the resources of a strong sponsor group like KRG Capital have produced outstanding results."
"We invested in Transcore because we believed that its market-leading position would allow it to set the standard for the intelligent transportation system market in the US and abroad," said American Capital Principal Darin Winn. "Combined with its existing market presence, this acquisition puts Transcore well on the way to doing that."
"American Capital's earlier investment helped us consolidate ownership with the company's employees," said TransCore President John Worthington. "The follow-on investment allows us to significantly expand the breadth and depth of the services we offer in the transportation market place."
American Capital is a publicly traded buyout and mezzanine fund. American Capital is an equity partner in management and employee buyouts; invests in debt and equity of companies led by private equity firms, and provides capital directly to private and small public companies. American Capital funds growth, acquisitions and recapitalizations.
Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.
Capital.com, Inc., a portfolio company of American Capital Strategies, Ltd. (Nasdaq:ACAS), is a business finance portal where premier financing sources compete to provide receivable and inventory financing, machinery and equipment loans and leasing, real estate and construction financing, subordinated debt and equity financing for growth, acquisitions, management buyouts, liquidity, recapitalizations, ESOP transactions and SBA loans. Companies in need of financing or information about financial services should contact Capital.com at info@Capital.com, or call Harry Kelly, vice president, at (646) 935-1100.
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.
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