Bethesda, MD - December 2, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) announced today it has invested $15 million in MATCOM International Corporation ("MATCOM"), a defense contractor and provider of IT and engineering services to various military and civilian agencies of the Federal Government, including the newly formed Department of Homeland Security. 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. American Capital provided senior secured and senior secured subordinated financing, while Citizens Bank, N.A. remained as MATCOM's revolving credit facility provider. The shareholders of MATCOM include DFW Capital Partners, Westbury Equity Partners, and the management of MATCOM. Former shareholders of the acquired company retained an equity interest in the combined company.
"American Capital is on our plan for both the fourth quarter and the full year," said American Capital COO Ira Wagner. "As a Federal IT and engineering services contractor, the MATCOM investment adds a new category to our already diversified portfolio. MATCOM is well positioned to benefit from anticipated increases in demand for its services, with its focus on defense logistics, military command, control, communications, computer & intelligence (C4I) systems engineering and Homeland Security support services."
American Capital has invested more than $550 million in the past twelve months and approximately $480 million this year in middle market companies.
Click here for more information about American Capital's portfolio.
"MATCOM has built a strong market position in its niche within the Federal Government contracting industry, distinguishing itself by its deep-seated functional and technical expertise and delivery of robust and versatile integrated solutions," said American Capital Managing Director and Principal Darin Winn. "MATCOM has a strong track record of growth, both internally and via acquisition. The company has also proven skilled at leveraging acquired customers and skills across its existing business base. The company's most recent acquisition further strengthens MATCOM's position within both the Air Force and the newly-created Department of Homeland Security."
Founded in 1983 in Alexandria, VA, MATCOM has experienced steady growth in recent years. Currently operating with over $70 million in annual revenues, 31 offices, and over 600 employees, MATCOM's attention to its strategic plan has enabled it to establish strong and growing relationships with numerous Government agencies, including all the military services, the Department of Agriculture, Federal Retirement Thrift Investment Board, National Institute of Standards and Technology and the US Customs Service.
"American Capital's flexible financing was crucial in completing this transaction, "said DFW General Partner Keith Pennell. "With American Capital as our investment partner, we can provide the necessary support to MATCOM, enabling it to expand and offer more services to its current clients as well as target other agencies that could greatly benefit from the company's quality services."
For more information about MATCOM's quality information technology and engineering solutions click here.
You Can't Restate a Dividend!
American Capital has declared a $.67 per share dividend to be paid on December 31, 2002 to record holders as of December 12, 2002. This dividend is an 18% increase over the fourth quarter 2001 regular dividend of $0.57 per share. American Capital has paid or declared $2.55 in dividends this year and $10.31 in dividends since its August 1997 IPO at $15.00 per share.
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $1.5 billion. American Capital is an equity partner in management and employee buyouts, invests in private equity sponsored 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.
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.
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.
