Safeguard Scores $100 Million Sale (SFE)

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Safeguard Scientifics, Inc. (NYSE: SFE) has signed and exit agreement regarding its ownership position in three majority-held and three minority-held partner companies through a transaction with Saints Capital.  The partner companies being sold in the transaction are Acsis, Inc., Alliance Holdings Group Associates, Inc., Laureate Pharma, Inc., NextPoint Networks, Inc., Neuronyx, Inc. and ProModel Corporation.

This sale is being valued at approximately $100 million and is expected to generate a Pre-expense and pre-transaction cost gain of roughly $16 million.  Saints will additionally be assuming an aggregate of $31.5 million in debt guaranties from Safeguard concerning certain companies being sold.

We interviewed the CEO of Safeguard last year when their hadn’t been any major swings in the credit markets and in private equity.  You can see that full interview here.

The company operates as a holding company which builds value in growth-stage technology and life sciences companies, and income is usually generated from gains in portfolio companies. Safeguard typically invests in fast-growing companies with capital requirements between $5 and $50 million.

Safeguard shares are up some 7% at $1.65 on this news, and the 52-week trading range is $1.46 to $3.28.  Its market cap at current prices sits at $199.7 million.

Jon C. Ogg
March 3, 2008