Capital Southwest Supports Align Capital Partners’ Acquisition of Electronic Transaction Consultants
August 13 2020 - 4:01PM
Capital Southwest Corporation (“Capital
Southwest”) (Nasdaq: CSWC), an internally managed business
development company focused on providing flexible financing
solutions to support the acquisition and growth of middle market
businesses, announced today that it supported Align Capital
Partners’ (“ACP”) recent acquisition of Electronic Transaction
Consultants Corporation (“ETC” or the “Company”) from Italian
parent company Atlantia SpA with a revolver, first lien term loan
and equity co-investment. Capital Southwest led the financing
transaction and will act as the sole administrative agent on the
credit facility. Main Street Capital Corporation (NYSE: MAIN) and
Principal Global Investors, LLC (an affiliate of Principal
Financial Group, Nasdaq: PFG) were co-lenders on the term loan and
the revolving credit facility.
"We are excited to partner with ACP and ETC. ACP
brings extensive experience investing in the technology and
business services sectors and we look forward to supporting ETC to
invest in its technology and team to build out its
Mobility-as-a-Service platform," said Douglas Kelley, Managing
Director of Capital Southwest. Grant Eason, Vice President of
Capital Southwest said, “ETC is a critical technology partner to a
number of the largest tolling authorities in the country and is
well-positioned to leverage its leading technology suite for new
projects and agency relationships.”
Headquartered in Richardson, TX, ETC is an
industry-leading software and services provider of electronic
tolling technology and smart mobility solutions. Founded in 1999,
ETC serves electronic tolling agencies by providing back office and
roadside services through its next-generation, modular software
platform. The Company’s proprietary software utilizes artificial
intelligence (“AI”) technology and big data to meet unique tolling
and transportation needs at a lower cost to the customer.
About Capital Southwest
Capital Southwest Corporation (Nasdaq: CSWC) is
a Dallas, Texas-based, internally managed business development
company with approximately $278 million in net assets as of June
30, 2020. Capital Southwest is a middle market lending firm focused
on supporting the acquisition and growth of middle market
businesses with $5 million to $25 million investments across the
capital structure, including first lien, unitranche, second lien,
subordinated debt and non-control equity co-investments. As a
public company with a permanent capital base, Capital Southwest has
the flexibility to be creative in its financing solutions and to
invest to support the growth of its portfolio companies over long
periods of time.
About Align Capital
Partners
Align Capital Partners is a growth-oriented
private equity firm that partners with business owners and
management teams to create shared success. ACP manages $775 million
in committed capital with investment teams in Cleveland and Dallas.
ACP brings experience and resources to help lower-middle market
companies accelerate their growth, to the benefit of management,
employees, and the firm’s investors. ACP makes control investments
in differentiated companies within the technology, business
services, specialty manufacturing / distribution, and healthcare
sectors.
Forward-Looking Statements
This press release contains historical information
and forward-looking statements with respect to the business and
investments of Capital Southwest. Forward-looking statements are
statements that are not historical statements and can often be
identified by words such as "will," "believe," "expect" and similar
expressions and variations or negatives of these words. These
statements are based on management's current expectations,
assumptions and beliefs. They are not guarantees of future results
and are subject to numerous risks, uncertainties and assumptions
that could cause actual results to differ materially from those
expressed in any forward-looking statement. These risks include
risks related to: whether the SBA ultimately issues the SBIC
license and the timing thereof; changes in the markets in which
Capital Southwest invests; changes in the financial, capital, and
lending markets; regulatory changes; tax treatment and general
economic and business conditions; and uncertainties associated with
the impact from the COVID-19 pandemic, including its impact on the
global and U.S. capital markets and the global and U.S. economy,
the length and duration of the COVID-19 outbreak in the United
States as well as worldwide and the magnitude of the economic
impact of that outbreak; the effect of the COVID-19 pandemic on our
business prospects and the operational and financial performance of
our portfolio companies, including our ability and their ability to
achieve their respective objectives, and the effects of the
disruptions caused by the COVID-19 pandemic on our ability to
continue to effectively manage our business.
Readers should not place undue reliance on any
forward-looking statements and are encouraged to review Capital
Southwest's Annual Report on Form 10-K for the year ended March 31,
2020 and subsequent filings, including the "Risk Factors" sections
therein, with the Securities and Exchange Commission for a more
complete discussion of the risks and other factors that could
affect any forward-looking statements. Except as required by the
federal securities laws, Capital Southwest does not undertake any
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events,
changing circumstances or any other reason after the date of this
press release.
Investor Relations
Contact:Michael S. Sarner, Chief Financial
Officer214-884-3829
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