Rand Capital Corporation, a business development company providing alternative financing for lower middle market companies, announced the successful completion of the previously reported acquisition of its portfolio company, SciAps, Inc., by Spectris plc (LSE: SXS).

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The transaction closed on August 21, 2024, and yielded total proceeds for Rand at the closing of $13.1 million, exceeding the June 30, 2024 valuation for Rand’s equity and debt investments in SciAps of $10.8 million.

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The proceeds from the sale payable at closing to Rand consisted of $2.1 million in debt repayment, $165,000 in interest income and loan-related fees, and $10.8 million in equity return. These totals also reflect $244,000 held in transaction-related escrows.

“The sale of SciAps has delivered a substantial return on our initial 2013 investment,” stated Daniel P. Penberthy, President and CEO of Rand Capital. “With an equity investment that had a cost basis of $3.1 million, this outcome highlights the impressive success of the sale. The repayment of debt by SciAps as part of the acquisition transaction will reduce our interest income in the short term, however, the proceeds from the equity return will further support our strategic shift towards a more debt focused investment portfolio. These proceeds have enhanced our liquidity and strengthened our position to identify and capitalize on new debt opportunities, which we expect will further drive our interest income and shareholder dividends over the long term.”

About Rand Capital

Rand Capital is an externally managed business development company (BDC). The Company’s investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries.

Rand invests in businesses that have sustainable, differentiated and market-proven products, revenue of more than $10 million and EBITDA in excess of $1.5 million. The Company’s investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company’s website where it regularly posts information: randcapital.com.