American Capital Receives $215 Million From CIBT Solutions Sale
American Capital, Ltd. announced that on December 15, 2011 it completed the sale of its portfolio company CIBT Solutions, Inc. (CIBT) to ABRY Partners. American Capital received $215 million in cash proceeds, which were less than American Capital’s third quarter 2011 valuation of the investment by $2 million, or less than 1%.
American Capital’s compounded annual rate of return earned over the life of its total investment in CIBT was 15% for all debt and equity investments, including interest, dividends, fees and expected escrow proceeds.
“We are extremely pleased with the results of our CIBT investment, which illustrates American Capital’s long-term dedication to assisting portfolio companies with flexible financing solutions,” said Brian Graff, American Capital senior managing director. “We continue actively to seek attractive investment opportunities such as CIBT, including One Stop Buyouts of up to $300 million and lending opportunities ranging from $10 million to $100 million in support of private equity sponsored buyouts.”
“Following our initial debt investment in CIBT in 2006 and then our One Stop Buyout in 2008, we have worked closely with management as they continued to expand CIBT globally and build the company into an industry leading platform,” said Sean Eagle, American Capital principal, Buyouts Group. “CIBT has succeeded in spite of the economic downturn, growing both organically and through an active acquisition program.”
CIBT is a global provider of expedited travel document processing services. Through operations in North America, Europe and Asia, CIBT serves multinational corporations, global travel management companies, tour and cruise operators, government agencies and Do-It-Yourself travelers. CIBT assists nearly one million travelers annually to obtain short-term visas, passports and other documents for business and leisure travel.
“We are excited to continue our relationship with CIBT by virtue of our retained equity interest in the newly capitalized CIBT alongside ABRY,” said Justin DuFour, American Capital VP, Buyouts Group. “CIBT’s global scale and leading market position will enable it to continue to thrive from ongoing growth in international travel and the increasing need for travel documentation.”
American Capital first invested in CIBT in May 2006 to support Audax Group’s acquisition of CIBT. In January 2008, American Capital acquired the company from Audax through a One Stop Buyout. Since 2008, American Capital has supported CIBT’s acquisition of four travel document expeditors, including CIBT’s September 2010 acquisition of London-based Travel Logistics Limited.