American Capital Receives $94 Million from Sale of Portfolio Company eLynx and Generates a 2.1 Money Multiple Return on Its Investment
OREANDA-NEWS. American Capital, Ltd. (Nasdaq: ACAS) ("American Capital") announced today that its portfolio company eLynx Holdings, Inc., parent to eLynx, Inc. (the "Company"), was sold to Black Knight Financial Services (NYSE: BKFS), a leading mortgage technology company, for $115 million. American Capital received $94 million in equity proceeds from the transaction, subject to post-closing adjustments. Over the life of the investment, American Capital realized 2.1 times its investment in the Company and generated a compounded annual rate of return of 11.1%, including interest, dividends and fees.
eLynx is a leading provider of secure electronic data and document delivery ("EDD") processing solutions to the mortgage industry and was the first to develop a web-based EDD processing system to transmit secure mortgage documents. eLynx solutions help automate paper-intensive processes, improve workflow, reduce costs and support compliance with industry regulations. Founded in 1994, eLynx is based in Cincinnati, OH.
American Capital first invested $39 million in the One Stop Buyout® of eLynx in December 2004. In September 2006, American Capital invested an additional $20 million to support the Company's add-on acquisition of SwiftView Inc., a provider of electronic document distribution services.
"We are extremely delighted with our successful investment in eLynx and the results of this transaction," said Dustin Smith, American Capital Managing Director. "Despite the historic disruptions in the mortgage market since our original investment in eLynx, the Company vastly outperformed the market through a combination of new customer wins and increased penetration with existing customers as well as significant enhancement to their product and technology offerings."
Since American Capital's 1997 IPO through the first quarter of 2016, it has earned a 9% compounded annual return, including interest, dividends, fees and net gains, from realizations of senior debt, subordinated debt, equity and structured products investments, totaling approximately $28 billion of committed capital. American Capital earned a 15% compounded annual return on the exit of its equity investments, including dividends, fees and net gains.
ABOUT AMERICAN CAPITAL
American Capital, Ltd. (Nasdaq: ACAS) 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. American Capital manages $20 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $77 billion of total assets under management (including levered assets). Through a wholly owned affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC), American Capital Mortgage Investment Corp. (Nasdaq: MTGE) and American Capital Senior Floating, Ltd. (Nasdaq: ACSF) with approximately $10 billion of total net book value. American Capital and its affiliates operate out of six offices in the U.S. and Europe.
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