Rand Capital, a business development company providing alternative financing for lower middle market companies, completed the previously reported acquisition of its portfolio company, SciAps, by Spectris. The transaction closed on Aug. 21, 2024, and yielded total proceeds for Rand at the closing of $13.1 million, exceeding the June 30, 2024 valuation for Rand’s equity and debt investments in SciAps of $10.8 million.
The proceeds from the sale payable at closing to Rand consisted of $2.1 million in debt repayment, $165,000 in interest income and loan-related fees and $10.8 million in equity return. These totals also reflect $244,000 held in transaction-related escrows.
“The sale of SciAps has delivered a substantial return on our initial 2013 investment,” Daniel P. Penberthy, president and CEO of Rand Capital, said. “With an equity investment that had a cost basis of $3.1 million, this outcome highlights the impressive success of the sale. The repayment of debt by SciAps as part of the acquisition transaction will reduce our interest income in the short term, however, the proceeds from the equity return will further support our strategic shift towards a more debt focused investment portfolio. These proceeds have enhanced our liquidity and strengthened our position to identify and capitalize on new debt opportunities, which we expect will further drive our interest income and shareholder dividends over the long term.”
