Hercules Technology Growth Capital records gross realized proceeds on sale of Gomez

Hercules Technology Growth Capital, Inc. (NASDAQ:HTGC), the leading specialty finance company providing venture debt and equity to venture capital and private equity-backed technology and life science companies at all stages of development, today announced that it has recorded gross realized proceeds on the sale of Gomez, Inc., one of its portfolio companies, to Compuware Corporation of $1.7 million.

In October 2009, Gomez, Inc., agreed to be acquired by Compuware Corporation (NASDAQ:CPWR) for approximately $295 million in a cash transaction. This acquisition closed in November 2009 and, as a result, Hercules has realized gross proceeds from the sale of its warrants of approximately $1.7 million, or $0.05 per share based on current shares outstanding. This represented a total internal rate of return or “IRR” of over 28% on the Company’s initial investment and generated a multiple of 4.5x on its warrants in Gomez.

“In the midst of a difficult market environment, we achieved a strong return on our investment in Gomez,” said Manuel A. Henriquez, co-founder, chairman and chief executive officer of Hercules. “This realized gain is indicative of Hercules’ ability to identify and invest in some of the best promising companies and entrepreneurs. Assuming that the venture capital environment continues to improve, we believe there will be more opportunities to achieve additional successful portfolio outcomes and exits in 2010.”