American Capital has sold its portfolio company Narus to Boeing for proceeds of USD12m.
American Capital realised a gain of USD3m during the third quarter from the transaction, subject to post-closing adjustments.
American Capital’s compounded annual rate of return earned over the life of its investment was seven per cent.
The proceeds received by American Capital were less than the second quarter 2010 valuation of the investment by USD2m, or 13 per cent.
Including investments in Narus by American Capital’s affiliated funds under management, the total proceeds received during the third quarter from the transaction were USD21m, realising a gain of USD5m, subject to post-closing adjustments.
Narus is a provider of real-time network traffic and analytics software used to protect against cyber attacks and persistent threats aimed at large internet protocol networks. Headquartered in California, the company employs approximately 150 people.
American Capital and its affiliates made an initial direct investment of USD13m in Narus in October 2006 and provided subsequent financing for growth and working capital. American Capital’s initial investment took the form of convertible preferred equity.