American Capital Invests $11 Million in SIXNETNovember 28, 2007
Investment is to support SIXNET's growth with the add-on acquisition of BlueTree Wireless Data Inc., adding M2M cellular data products to SIXNET's existing automation and networking portfolio.
BETHESDA, MD /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. (NASDAQ:ACAS) announced that it and its affiliates have invested $11 million in its portfolio company SIXNET Holdings, LLC to support the acquisition of BlueTree Wireless Data Inc., a leading supplier of machine to machine (M2M) cellular data products. SIXNET is a leading manufacturer of process automation, Ethernet connectivity and landline modem products used in harsh industrial, commercial and military applications. American Capital's investment takes the form of an increase in its unirate loan and additional common stock. American Capital Equity Fund I LLC and American Capital Equity II LP, funds managed by American Capital, respectively provided 30% and 16.7% of the American Capital equity investment. Riverside Partners LLC and SIXNET CEO Steve Schoenberg also invested additional equity in SIXNET to support the acquisition.
"We are pleased to support SIXNET's growth through additional debt and equity financing in support of this complementary add-on acquisition," said Darin Winn, American Capital Regional Managing Director. "With strong growth trends in both the industrial wireless data and machine to machine markets, this is an excellent opportunity to help our portfolio company expand. BlueTree Wireless' evolutionary 3G broadband cellular technology, with much quicker data transmission rates than prior technology, should further drive growth."
American Capital has invested directly and through its funds under management approximately $11 billion in the last twelve months, approximately $9.9 billion year to date and approximately $1.5 billion quarter to date. Not including funds under management, American Capital has invested approximately $8.1 billion in the last twelve months, approximately $7.3 billion year to date and approximately $1.3 billion quarter to date. For more information, see American Capital's portfolio.
"There is a strong strategic rationale for combining BlueTree Wireless with SIXNET," said Frank Do, American Capital Managing Director. "Merging these two businesses creates a high growth company because of synergies in end markets, technology, manufacturing, geography, marketing and distribution. BlueTree Wireless brings strong customer relationships, having been approved by and partnered with all the major North American carriers in the U.S."
American Capital first invested in SIXNET in 2005, supporting SIXNET's recapitalization. Established in 1976, Clifton Park, NY-based SIXNET is a manufacturer of industrial automation, data-acquisition, control and connectivity products designed for the harsh conditions found on plant floors and other extreme environments. SIXNET has remained continuously profitable for three decades.
Founded in 2002, BlueTree Wireless is a leading developer and manufacturer of wireless modems and software solutions for commercial and industrial applications. BlueTree Wireless's modems are designed to operate on cellular networks worldwide enabling M2M applications in the public safety, fleet management, field service, supervisory control and data acquisition (SCADA) and telemetry markets. Its main offices are located in Montreal, Quebec and Chapel Hill, NC.
"We are excited to have American Capital support our acquisition of BlueTree Wireless," said Steve Schoenberg, CEO, SIXNET. "American Capital has always valued our history of innovation. We know we can rely on the team at American Capital for their experience, knowledge and financial resources."
About American Capital
American Capital is the only alternative asset management company in the S&P 500. With $19 billion in capital resources under management, American Capital is the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers. American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital and its affiliates invest from $5 million to $800 million per company in North America and euro 5 million to euro 500 million per company in Europe.
As of October 31, 2007, American Capital shareholders have enjoyed a total return of 607% since the Company's IPO, an annualized return of 21%, assuming reinvestment of dividends. American Capital has paid a total of $1.9 billion in dividends and paid or declared $26.16 dividends per share since going public in August 1997 at $15 per share.
Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Senior Vice President, Business Development, at (800) 248-9340, or visit or American Capital's US Web site or the European Capital Web site.
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