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For Immediate Release
BIA DIGITAL PARTNERS LEADS A $25 MILLION INVESTMENT IN THE MOTLEY FOOL WITH CO-INVESTMENT PROVIDED BY PATRIOT CAPITAL
CHANTILLY, VA, CHANTILLY, VA, November 2, 2009 - BIA Digital Partners II LP (“BIA”), a private investment firm focusing on mid- to later-stage companies, and Patriot Capital II, LP (“Patriot”), which provides growth capital for middle-market companies seeking to finance business expansion and acquisitions, today announced an investment of $25 million in The Motley Fool Holdings, Inc. (the "Company"). BIA invested $15 million, while Patriot provided $10 million. The proceeds will be used by the Company to provide shareholder liquidity, growth capital and for general corporate purposes. In recognition of the investment, Lloyd Sams of BIA and Thomas Holland of Patriot have been appointed as director and observer, respectively, on the Company’s board of directors.
Founded in 1993 in Alexandria, VA by brothers David and Tom Gardner, The Motley Fool is a multimedia financial services company dedicated to building the world's greatest investment community. The Company reaches millions of people each month through its website www.fool.com, subscription newsletter services, podcasts, book publications, syndicated newspaper content, and television appearances. The Motley Fool recently launched an asset management business offering a retail mutual fund and a private fund for qualified investors. The Motley Fool’s products and services -- whether free or fee-based, online or offline -- are designed to help people take control of their financial lives.
“At The Motley Fool we care deeply about the people we work with, and we’re fortunate to have had some terrific strategic partners over the years,” said Tom Gardner, Co-Founder and CEO of the Company. “BIA and Patriot are remarkably Foolish additions to our team. As we prepare to pay off our initial venture capital investors, the Fool is financially stronger than ever, and our partnership with BIA and Patriot will help position us to take advantage of new growth opportunities and continue our mission to educate, amuse and enrich the individual investor.”
“The Motley Fool has a strong, established brand and is deeply embedded in the Web due to its first mover advantage. For over 15 years, the Company has been producing valuable and desirable content to help individual investors navigate and analyze an increasing complex landscape,” stated Sams. “We were most impressed with Motley Fool’s leadership and their vision for moving this Company forward. Their unique culture permeates everything they do and it is evident in the engagement of their users,” added Holland. Added Sams, “This is a company that has really figured out how to harness the power of the internet and create a community with a common purpose. We are excited for the opportunity to join the team and help take the Company to the next level.”
For additional information on BIA Digital Partners, please contact Lloyd Sams or Gretchen Dowling at (703) 227-9600 or visit our website at www.biadp.com.
About BIA Digital
BIA Digital Partners is a private investment firm, managing approximately $280 million. Financing is available for acquisitions, organic growth, recapitalizations and leveraged/management buyouts among other purposes. BIA Digital Partners maintains a focus on mid- to later-stage companies operating in the media and entertainment, telecommunications, information, education, business and consumer services industries. Investments generally range from $5 to $15 million and are typically in the form of subordinated debt with warrants or preferred equity. For more information on BIA Digital Partners, please visit www.biadp.com.
About Patriot Capital II, L.P. About The Motley Fool
Patriot Capital is a leading source of growth capital for middle-market companies seeking to finance business expansion, acquisitions, management buyouts or balance sheet recapitalizations. Patriot Capital II and its predecessor Funds, Allegiance Capital and Patriot Capital I have over $270 million of capital under management. Patriot Capital utilizes a disciplined investment strategy developed over many years that focuses on capital preservation, consistent earnings growth and income generation. Patriot Capital has invested in and managed companies successfully through varying periods of economic expansion and contraction. We understand and employ successful strategies and tactics needed to guide our companies through these periods.
Founded in 1993 in Alexandria, VA, by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.
About The Motley Fool