Battery Ventures has purchased a controlling stake in Data Physics Corp., a designer and manufacturer of test-and-measurement systems for noise and vibration applications. Battery Ventures intends to grow Data Physics both organically and through acquisitions.
“We are excited by the potential of Data Physics and the broader physical property test-and-measurement market, which is fragmented and ripe for consolidation,” said Jesse Feldman, a Battery general partner who is joining the company’s board. “Given Data Physics’ range of market-leading products, customer diversity and global brand, we feel the company can produce market-leading growth.”
Data Physics Corporation designs and manufactures test and measurement equipment and software for acoustic testing, machinery diagnostics, shock and drop testing, structural vibration testing, and shaker testing applications. The company offers signal analyzers, vibration control systems, shakers, amplifiers and accessories, underwater acoustics products, and post-contract support services. Data Physics serves customers in a range of industries including aerospace, defense, automotive, and electronics. Data Physics was co-founded in 1984 by Hewlett-Packard alumni Sri Welaratna and Dave Snyder. The company is based in San Jose, CA (www.dataphysics.com).
Upon closing on the acquisition, Battery has appointed Louis Pace, an industrial technology executive and former Battery executive in residence, as the new CEO of Data Physics and as a member of its board of directors. Mr. Pace was previously chief operating officer of HallStar, a specialty-chemical manufacturer, as well as vice president of business development at Belden, a manufacturer of signal-transmission equipment. He also served as president of Belden’s Specialty Products Division.
“Battery has developed deep domain expertise over the last decade building multi-hundred million dollar businesses in this market. I am thrilled by this opportunity to step into a leading operating role at a Battery company, and by the chance to work with the Data Physics management team and Co-Founder Sri Welaratna,” said Mr. Pace.
Battery invests in seed, early, growth and buyout opportunities in technology and related markets. Sectors of specific interest include software and services, web infrastructure, e-commerce, digital media and industrial technologies. The firm was founded in 1983 and is based in Boston with additional offices in Silicon Valley and Israel (www.battery.com).
Data Physics is the fifth active industrial-technology platform in the Battery portfolio, joining Drillinginfo, Industrial Safety Technologies, Nova Instruments and Nova Metrix. Battery is continuing to expand its investment activity in the industrial-technology markets and has completed more than 20 transactions to date across the US and Europe since 2003.
Early last year Battery closed on two new funds, Battery Ventures X at its $650 million target, and Battery Ventures X Side Fund at its $250 million target. The firm’s last fund, Battery Ventures IX with $750 million in capital commitments, closed in March 2010.
Monroe Capital (www.monroecap.com), a specialty finance company providing senior and junior debt and equity co-investments to middle-market companies, provided a senior secured credit facility to support Battery’s purchase of Data Physics. “We were pleased that Battery Ventures had the confidence in Monroe to provide a financing solution to support the purchase of a controlling stake in this leading-edge technology company,” said Ted Koenig, President & CEO of Monroe Capital. “This investment represents Monroe’s dedication and expertise within the technology space as we continue to expand our vertical.”
© 2014 PEPD • Private Equity’s Leading News Magazine • 2-12-14
