Alerion Capital Group of Scottsdale, Ariz., recapitalized Kiosk Information Systems, which is a privately-held designer and maker of customized self-service kiosk systems, solutions and services. McGladrey Capital Markets served as exclusive financial adviser to KIOSK. Silicon Valley Bank provided senior debt and Peninsula Capital provided mezzanine debt, but specific financial details were not disclosed.
Kiosk Information Systems (KIOSK), a privately-held designer and manufacturer of customized self-service kiosk systems, solutions, and services, was recapitalized by Alerion Capital Group, a private equity and management advisory firm.
“This transaction confirms our view that kiosks will remain an important enabling technology for an ever-increasing amount of day-to-day, self-service transactions across many applications.”
McGladrey Capital Markets initiated the transaction, sourced the investor, led the negotiations, and acted as exclusive financial advisor to KIOSK. Transaction terms were not disclosed. Faegre & Benson acted as legal counsel to KIOSK. Ballard Spahr acted as legal counsel for Alerion. Senior and Mezzanine debt was provided by Silicon Valley Bank and Peninsula Capital, respectively.
“KIOSK’s stakeholders sought an experienced value-added investor who could help the company reach the next level of success, provide current liquidity, and begin a gradual long-term succession plan for the majority owner,” said Paul Weisbrich, senior managing director at McGladrey Capital Markets. “This transaction confirms our view that kiosks will remain an important enabling technology for an ever-increasing amount of day-to-day, self-service transactions across many applications.”
Rick DeAvila, managing director for Alerion, stated, “We are very excited about the KIOSK recapitalization. KIOSK fits well into our strategy of investing in technology-related growth opportunities that complement our operating experience. This recapitalization provided us with both an opportunity to invest with an impressive management team and in the rapidly maturing kiosk/automated self-service marketplace. We look forward to partnering with management to maintain the company’s stellar reputation for leading solution development and continue the support of its valued customers and suppliers.”
About Kiosk Information Systems
Since 1993, KIOSK Information Systems (KIOSK) has led the industry in design and manufacturing of self-service kiosk terminals. An exceptionally broad portfolio of standard and custom KIOSK designs is deployed with Fortune 500 clients in virtually all self-service vertical markets. As the undisputed market leader in custom solutions, KIOSK provides proven expertise in design engineering, component integration, and quick-turn manufacturing for even the most sophisticated self-service solutions. ISO 9001:2008 certified processes in engineering, manufacturing, service, and support ensures every solution provides superior field reliability.
About Alerion Capital Group
Headquartered in Scottsdale, Arizona, Alerion Capital Group is a private equity firm investing in mid-market technology businesses located primarily in the Mountain West and West. Alerion’s investment philosophy focuses on companies that will benefit most from the group’s direct operating experience and knowledge, centering around technology products and technology enabled services. Alerion was founded by James Unruh, former Chairman and CEO of Unisys, as a means of helping managers build their companies leveraging the entire Alerion team’s collective 75+ years of technology industry experience.
About McGladrey Capital Markets
McGladrey Capital Markets LLC (www.mcgladreycm.com) is a global provider of investment banking services to private and public companies with annual revenues of up to $1 billion. The firm’s services include mergers, acquisitions, divestitures, recapitalizations, capital raising, fairness opinions and restructurings. McGladrey Capital Markets, which offers in-depth expertise in many distinct industry sectors, brings together companies, capital and creativity on a national and international scale to help clients achieve their personal and strategic objectives.
McGladrey Capital Markets is affiliated with RSM McGladrey Inc., a professional services firm providing accounting, tax and business consulting. Both firms are indirect subsidiaries of H&R Block Inc. (NYSE: HRB), the world’s preeminent tax services provider. McGladrey Capital Markets’ international headquarters are located in Costa Mesa, Calif. The firm is a member of FINRA.