American Capital has completed the sale of its portfolio company Unwired Holdings, the parent company of Unwired Technology, to Delphi Automotive.
Unwired Technology is a designer and supplier of high-speed USB connectivity modules and wireless headphone systems for the global automotive industry. The company’s products provide power and data connectivity for portable media and smartphone devices that interface with automotive entertainment systems. Unwired Technology was founded in 1997 and is headquartered in Auburn Hills, MI with other offices in Woodbury, NY and Hong Kong (www.unwiredtechnology.com).
American Capital invested $56 million in the buyout of Unwired in May 2005. American Capital’s investment took the form of a revolving credit facility, a senior term loan, subordinated debt and equity. American Capital’s compounded annual rate of return earned on its debt and equity securities over the life of its investment was 16%, including interest, dividends, realized gains and fees. American Capital received 2.4 times its equity investment and realized a compounded annual rate of return of 17% over the life of its equity investment, including dividends, realized gains and fees.
“We are extremely pleased with the impressive results of our investment in Unwired,” said Craig Moore, Managing Director, Operations Team. “This investment is an outstanding example of American Capital’s One Stop Buyout strategy and patient, long-term commitment to value creation at our portfolio companies.”
“For nine years, American Capital supported Unwired, devoted significant financial and human capital resources to the company, and provided strategic guidance to support our growth initiatives. We are excited to move forward with the next stage of growth in partnership with Delphi,” said Joseph Damato, Chief Executive Officer of Unwired. “By leveraging Unwired’s and Delphi’s common commitment to innovation, engineering and product development, we will continue to provide the market with the highest quality rear seat entertainment and media connectivity products.”
Delphi Automotive (NYSE: DLPH) is a global supplier of technologies for the automotive and commercial vehicle markets. Headquartered in Gillingham, England, Delphi operates major technical centers, manufacturing sites and customer support services in 32 countries, with regional headquarters in Bascharage, Luxembourg; Sao Paulo, Brazil; Shanghai, China; and Troy, MI (www.delphi.com).
American Capital is a publicly traded (NASDAQ: ACAS) private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in lower and middle market private equity, leveraged finance, real estate, energy & infrastructure and structured products. From its eight offices in the US and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $750 million. The firm is headquartered in Bethesda, MD (www.AmericanCapital.com).
2014 PEPD • Private Equity’s Leading News Magazine • 10-14-14
