DALLAS, Nov. 25, 2019 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced that it closed the sale of Media Recovery, Inc. (“MRI”), d/b/a SpotSee, on November 25, 2019. Capital Southwest originally invested $5.4 million in MRI in November 1997. The sale transaction resulted in total value to Capital Southwest, in the form of cash and a potential earnout, generally in line with the most recent quarterly valuation.
In commenting on the sale, Bowen Diehl, President and Chief Executive Officer, stated, “We are pleased to announce the sale of SpotSee. SpotSee was one of the legacy portfolio companies we held after the spin-off of CSW Industrials and launch of our credit investment strategy. Over the past four years, the management team has done a stellar job growing the business and positioning the company for future growth. We have thoroughly enjoyed our close working relationship with the team and wish them all the best as they continue their strong performance with their new partner.”
CEO of SpotSee, Tony Fonk stated, “Capital Southwest has been an excellent sponsor for SpotSee. We have truly appreciated their strategic partnership and support over the years to help grow this business to where it is today. They have been instrumental to our past success and have set our company up for an exciting and successful future.”
About Capital Southwest
Capital Southwest Corporation (Nasdaq:CSWC) is a Dallas, Texas-based, internally managed business development company, with approximately $328 million in net assets as of September 30, 2019. 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.
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 changes in the markets in which Capital Southwest invests, changes in the financial and lending markets, regulatory changes, tax treatment and general economic and business conditions.
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, 2019 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 Officer
Source: Capital Southwest Corporation