Financial Asset Management Systems (FAMS) Acquired by Management and Public Buyout Firm
Kaulkin Ginsberg views transaction as symbolic of active M&A market
BETHESDA, MD, February 6, 2006 – Kaulkin Ginsberg Company today announced the sale of Financial Asset Management Systems, Inc. (FAMS), a leading accounts receivable management company, to management and American Capital Strategies, Ltd. (Nasdaq: ACAS). Kaulkin Ginsberg Company initiated this transaction and served as advisor to FAMS.
The acquisition of FAMS was completed in 2005 by American Capital, a publicly traded buyout and mezzanine fund with capital resources of approximately $7 billion, and the senior management team at FAMS. The transaction was structured as a buyout of the stock of the company owned by the founding partners, R.T. Cardwell and T.M. “Pete” Nance. The terms of this transaction were not disclosed. All senior managers will remain with FAMS and have an equity stake in the business. Noted Mr. Cardwell, “We wanted to make sure the sale was a good fit for all of FAMS’s existing employees and a great opportunity for the senior management team.”
“Attractive industry fundamentals, combined with FAMS’s strong, non-cyclical revenue base and potential for growth, make this an excellent investment for American Capital,” said American Capital Managing Director Jon Isaacson. “We look forward to working with FAMS’s strong and seasoned management team.”
According to Jim Paxton, the President and CEO of FAMS, “Our management team and I are very pleased to become a part of American Capital’s portfolio of companies. Their financial strength and exceptional leadership coupled with our strong platform will position FAMS to accelerate its already impressive track record for growth.”
As companies and governments continue to recognize the benefits of outsourcing non-core business functions, such as accounts receivable management, to third party experts, well-run service providers like FAMS are poised for tremendous growth. According to Brian Greenberg, Managing Director of Kaulkin Ginsberg, “The growth of outsourcing is just one of the positive catalysts that drove M&A activity to a record-breaking level in 2005.” According to Kaulkin Ginsberg Company, the ARM industry generated over $1.7 billion in mergers and acquisitions in 2005, the second consecutive year of record M&A activity. Greenberg added, “We expect this level of deal activity to continue in 2006 as buyers are still aggressively pursuing market leaders across multiple sectors.”
About Financial Asset Management Systems (FAMS)
Founded in 1993, the company services clients predominantly in the financial services, government/education, and telecommunication/wireless industries and employs approximately 500 professionals in four offices located in Atlanta and St. Louis. Its headquarters is located in Atlanta, Georgia. FAMS provides contingency collections, outsourcing, client care, and customer relationship management (CRM) services.
About American Capital
American Capital is a publicly traded buyout and mezzanine fund with capital resources of approximately $7 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to private and small public companies and through its asset management business is a manager of debt and equity investments in private companies and commercial loan obligations. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations.
About Kaulkin Ginsberg Company
Kaulkin Ginsberg Company is the leading advisor to the Accounts Receivable Management industry. Since 1991, the firm has advised on more than 100 ARM transactions with aggregate deal value in excess of $2.5 billion. The Strategic Advisory Group provides merger, acquisition, and valuation advice; operational consulting; and executive search services. The Research Group produces industry-specific publications and custom research products. The Kaulkin Ginsberg family of companies also include Kaulkin Media, publisher of the most popular sources of industry information such as CollectionIndustry.com(TM) and Credit & Collection Daily(TM). Read more about Kaulkin Ginsberg at www.kaulkin.com.
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