ACAS, which recently sold Granger a portfolio company for an undisclosed amount, recently announced another sale, bringing its total number of exits past 20 in the fourth quarter of 2009 and helping ACAS reduce debt by $300m while increasing its liquidity.
The newest sale completes ACAS' exit from HomeAway by separating it from its remaining equity in the company, which first saw ACAS investment in November 2006. The transaction brings ACAS $15m in cash, of which $4m is profit. ACAS' total investment in HomeAway included the financing of add-on acquisitions and other expansion strategies; the total investment in HomeAway reached $120m, but ACAS had previously exited the entire remainder of the transaction. Over the life of the investment, ACAS realized $18m in gains.
Hopefully ACAS' exits enable it to continue freeing cash for investment in interesting opportunities; this market should be swimming with them. I for one will be reading the annual report with interest to see what's been added over the year. ACAS may be forced to pay down debt as it matures, but I'd rather not see ACAS pay down revolving lines when better returns await in the markets.