CVC Capital Partners has acquired UK-based Wireless Logic, a machine to machine managed services provider. The seller was ECI Partners. No financial terms were disclosed. Arma Partners was financial adviser to Wireless Logic on the transaction.
London, 10 February 2015: CVC Capital Partners (“CVC”) announced today that funds advised by CVC have acquired Wireless Logic, Europe’s leader in M2M networks, from funds advised by ECI Partners (“ECI”).
Wireless Logic was formed in 1999 by Managing Director, Oliver Tucker, and Sales Director, Philip Cole – both highly experienced operators in the telecoms and technology industries.
During ECI’s period of investment Wireless Logic expanded internationally, opening offices in France, Germany and Spain and has nearly tripled the underlying subscriber base to circa 1.5m with profit and revenue growth in excess of 25% per annum (EBITDA CAGR was 31% and revenue CAGR 27%).
M2M managed services platforms, such as Wireless Logic, enable the “Internet of Things”, the mega-trend of the 21st century. The market for M2M connectivity and related services is forecast to grow from €7.1 billion in 2014 to €22.5 billion in 2019 and subscriptions from 214 to 600 million in the same period, representing a CAGR of 25.9% and 22.9% respectively. Gartner estimates that the number of wireless connected devices will reach 26 billion by 2020. Wireless Logic is at the forefront of this trend, providing secure connectivity across 26 European mobile networks and satellite. Through its ‘one window to all networks’ platform, it overlays a range of value-added services including secure VPN, device management, and global mapping solutions.
Customers include high growth companies such as Just Eat – connecting remotely-based ordering systems, Isotrak – vehicle tracking and telematics, and Verifone – chip and pin applications including payment systems for London’s black taxis.
Paul McCreadie, Partner in ECI’s TMT team, said:
“It has been a pleasure partnering with Oliver and Phil over the past four years and working with them to deliver their vision for Wireless Logic. Since 2011, the business has achieved a huge amount and this deal adds to our strong track record in backing high growth tech businesses to expand internationally. We wish Oliver, Phil and everyone at Wireless Logic every success with their new partner as they continue to lead the M2M market in Europe.”
Aaron Dupuis, Managing Director, CVC Growth Partners, said:
“We have been pro-actively targeting the M2M sector for investment due to the strong secular growth trends in the industry and identified Wireless Logic as one of the companies that is best positioned to benefit from these trends. Wireless Logic has established its market leading position in Europe by relentlessly focusing on customer satisfaction and quality of service.”
John Clark, Managing Partner, CVC Growth Partners, said:
“We are very pleased to partner with Oliver, Phil and their team to help them continue to build on their track record of growth and international expansion.”
Oliver Tucker, founder and MD of Wireless Logic, said:
“I would like to thank Paul and the team at ECI for the significant value that they added to help Wireless Logic become the leading M2M business in Europe. As a management team, we wanted to retain a significant portion of our equity in the company. Therefore, we sought out a partner who could help us maximize value going forward. CVC approached us before we had decided to pursue this transaction and demonstrated a clear understanding of our business and the strategic opportunity ahead. CVC’s global network, reach and resources will be tremendously supportive throughout our next phase of growth.”
Arma Partners acted as exclusive financial adviser to the shareholders of Wireless Logic.
About ECI Partners
ECI is the UK’s leading growth-focused, mid-market private equity firm. Founded in 1976, it is one of the longest established and most successful private equity groups in the UK having raised a £500m tenth fund in September 2014. With offices in London and Manchester, ECI invests in management buyouts, buyins and acquisition finance deals of growth companies valued between £20 million and £150 million.
Specialising in TMT, business services, industrial, healthcare and consumer companies, ECI has sold over 95 investments with a total value of over £3 billion since 1990.
ECI has a long track record of building successful businesses in the technology sector from its first buyout of Ansafone in 1981, generating long term returns of over 4x in the sector, through investments in firms such as NCC Group and most recent TMT exits including Irish technology company CarTrawler (sold to Insight Venture Partners and BC Partners for 6x), XLN (sold to GSO generating a 3x return), Healthcare IT provider Ascribe (sold to AIM listed EMIS for 2.1x), Lab software provider CliniSys (sold to Montagu for 2.5x).
Current investments include, the world’s leading provider of cloud-based hospitality management systems Fourth (2011 investment), online marketplace ATG Media (2014 investment), award winning online home insurance provider which uses proprietary data and technology Avantia (2014 investment), and provider of digital services that enable companies to manage their corporate communications and investor relations, Investis (2014 investment).
For more information, please visit www.ecipartners.com
About CVC Capital Partners
CVC is one of the world’s leading private equity and investment advisory firms. Founded in 1981, CVC today has a network of over 20 offices and over 300 employees throughout Europe, Asia and the US. Currently, CVC manages funds on behalf of over 300 investors from North America, Europe, Asia and the Middle East, who entrust their capital to CVC for periods of 10 years or more. To date, CVC has secured commitments of over US$60 billion in funds from a diverse and loyal investor base, completing over 300 investments in a wide range of industries and countries across the globe, with an aggregate transaction value of over US$120 billion. www.cvc.com
About CVC Growth Partners
In 2014, CVC formed a new team, led by John Clark, Managing Partner, to target smaller growth-oriented companies through its dedicated CVC Growth Fund. The fund focuses on middle-market, high-growth companies in the software and technology-enabled business services sector. The fund primarily targets equity investments between $50mn and $200mn in North America and Europe.
About Wireless Logic
Europe’s leading independent Machine to Machine (M2M) managed services provider, Wireless Logic works with over 950 application providers, system integrators and enterprises, delivering a range of managed services including management and monitoring software platforms, a cloud-based private network infrastructure as well as specialist cellular and satellite connectivity.
All services operate across a single unified technology platform and are designed to meet the specific needs of connected assets within the global markets of M2M and the Internet of Things (IoT). Continuous investment in technology enables Wireless Logic to provide an increasing range of value-added services which include specialist mapping solutions from Google and HERE, device management platforms and end-to-end security encryption services.
Horizontally positioned, Wireless Logic works with hundreds of vertical applications – these include asset and vehicle tracking, telematics, metering, security, electronic payment, m-healthcare and a range of enterprise solutions.
Connected devices through Wireless Logic exceed 1.5m subscriptions across 26 European networks. Carriers include O2, Telefonica, Vodafone, Everything Everywhere, Telenor, SFR, Bouygues, Deutsche Telekom and Inmarsat. The breadth of connectivity options give customers an unrivalled choice across Europe but with a global reach. 4
Wireless Logic is headquartered in Beaconsfield, UK with country offices in France, Germany and Spain.
For more information, please visit www.wirelesslogic.com