BETHESDA, Md., Feb. 28 /PRNewswire-FirstCall/ -- American Capital Strategies Ltd. announced today that in January it and its affiliates invested in NextPoint(TM) Networks, Inc. NextPoint is the result of the convergence of NexTone Communications, a leader in software-centric session border controllers (SBCs) and IP session management, and American Capital portfolio company Reef Point Systems, a provider of secure fixed- mobile connectivity solutions. The combined entity leverages NexTone's SBC and Reef Point Systems' fixed-mobile connectivity solutions to create the world's first Integrated Border Gateway (IBG) -- a single box providing edge-to-edge solutions to fixed-line and wireless service providers seeking global interconnectivity. American Capital's investment takes the form of preferred equity. American Capital Equity Fund I LLC and American Capital Equity II LP, funds managed by American Capital, respectively provided 30% and 12% of the American Capital equity investment. One Equity Partners, the private equity arm of JPMorgan Chase , and American Capital led the round of financing with participation from Jersualem Venture Partners, Core Capital Partners, Safeguard Scientifics and Summerhill Venture Partners.
"We are pleased to work with One Equity Partners for the first time while also supporting our portfolio company Reef Point," said Virginia Turezyn, American Capital Managing Director, Technology Group. "We believe this merger creates the world's first fully integrated fixed-mobile connectivity platform, bringing together the best of a flexible software solution and scalable hardware platform."
American Capital has invested directly and through its funds under management approximately $9.8 billion in the last twelve months and approximately $217 million quarter to date. Not including funds under management, American Capital has invested approximately $7.4 billion in the last twelve months and approximately $100 million quarter to date. American Capital assisted in the refinance or syndication of approximately $1.9 billion of senior debt for its portfolio companies in the last twelve months and approximately $42.5 million year to date. For more information about American Capital's portfolio, please visit http://www.americancapital.com/.
"The combined company will bring mobile and fixed-network operators around the world the ability to quickly, securely and profitably deliver voice, data and video services over all-IP networks," said Miles Arnone, American Capital Managing Director, Technology Group. "We believe NextPoint will have a market leading product offering by enabling operators to efficiently address the massive growth of mobile IP sessions. The combination also expands the companies' global reach and provides opportunities for cross-selling synergies."
"With over 25 years of telecommunications industry executive experience in the cellular infrastructure, IP wireless access and carrier revenue assurance sectors, NextPoint CEO Woody Ritchey has consistently built successful, international businesses for a range of start-ups and industry giants including Cisco, Motorola and AT&T," said Matt Bigge, American Capital Vice President, Technology Group. "Mr. Ritchey, along with the rest of the talented management team, will play a key role in the success of NextPoint."
Since March 2006, American Capital has invested $20 million in Reef Point in the form of convertible preferred securities. Reef Point is the leader in fixed-mobile convergence (FMC) border platforms and solutions. Reef Point's Universal Convergence Gateway (UCG) and its associated solution suites enable service providers to deliver secure mobile voice, data and multimedia over a single, scalable platform, interoperating with fixed-line and mobile network technologies, and network operating systems. Reef Point is located in Billerica, MA, with operations in markets around the world.
Gaithersburg, MD-based NextPoint Networks, formed by the merger of NexTone and Reef Point, delivers global, FMC border platforms and secure interconnectivity solutions. NextPoint's technology platform, products and solution suites will enable mobile and fixed line operators to deliver secure voice, data and multimedia over a scalable platform, interoperating with both fixed-line and mobile network technologies and operating systems. 550 service providers and enterprises worldwide will use NextPoint's IntelliConnect system to manage technical complexities, optimize business economics, and remove partnership hurdles.
"We are delighted to receive this additional investment from our investor American Capital," said Woody Ritchey, CEO, NextPoint. "American Capital's speed and flexibility was a major advantage when we were choosing a partner. As I transition from the CEO of Reef Point to lead NextPoint, I look forward to American Capital's useful insight and support."
ABOUT THE AMERICAN CAPITAL TECHNOLOGY GROUP
The American Capital Technology Group invests in early, middle and late stage technology companies. With the flexibility to invest in equity and debt from $5 million to $800 million, the American Capital Technology Group can provide its capital base and domain expertise to build category-leading, technology companies. These companies generally are mature, high performing, cash flowing companies with excellent growth rates. They operate across many industry sectors and are driven by a broad range of technologies. The Technology Group extends American Capital's existing technology investment business by investing in earlier stage technology companies.
ABOUT AMERICAN CAPITAL
American Capital is the only alternative asset management company that is a member of 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 euros 5 million to euros 500 million per company in Europe.
As of December 31, 2007, American Capital shareholders have enjoyed a total return of 453% since the Company's IPO -- an annualized return of 18%, assuming reinvestment of dividends. American Capital has paid a total of $2.1 billion in dividends and paid or declared $27.17 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 http://www.americancapital.com/ or http://www.europeancapital.com/.
Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.
This press release contains forward-looking statements. The statements regarding expected results of American Capital 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, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
American Capital Strategies Ltd.
