Graham Partners has acquired OptConnect, a provider of wireless connectivity products and services used for unattended equipment in the Machine to Machine (M2M) and the Internet of Things (IoT) markets.
OptConnect uses cellular wireless technology to provide connectivity for ATMs, self-service kiosks, micro-markets, smart safes, and digital signage. OptConnect has more than 3,000 customers with over 85,000 installed wireless units across North America. The company is headquartered north of Salt Lake City in Kaysville, UT (www.optconnect.com).
OptConnect was acquired by Graham Partners from Grant Victor (www.grantvictor.com), a provider of retail ATMs, parts and supplies, and services. Certain owners of Grant Victor, representing the founders and previous leadership of OptConnect, will retain an investment in the company.
Switching from landlines to wireless for ATM portfolios means significant monthly savings in telecommunications – as much as cutting costs in half. OptConnect’s wireless data communications subscription costs are nearly half as much as landline connectivity. Wireless operations on cellular networks also enable faster transaction speeds and mobility options for ATMs.
“OptConnect is a leading, innovative player in the industry with superior technology, deep customer relationships, and strong business practices. Graham plans to leverage the company’s leading market position and continue its expansion into high-growth IoT end markets,” said Rob Newbold, a Managing Principal at Graham Partners.
Graham Partners acquires companies with EBITDA between $5 million and $50 million and will invest in smaller companies as add-on acquisitions to existing portfolio companies. The firm is sponsored by the Graham Group, an industrial and investment concern with interests in plastics, packaging, machinery, building products and outsourced manufacturing. Graham Partners was founded in 1988 and is headquartered in Philadelphia (www.grahampartners.net).
In March 2017, Graham Partners sold its portfolio company Tidel Engineering, a provider of smart safes that are used by customers to secure and automate their cash handling operations, to Littlejohn & Co. Graham acquired Tidel in February 2015 and during its two-year ownership term Tidel’s EBITDA increased by over 150%.
“Graham’s industry expertise and experience investing in the IoT and smart safe industries resonated with the OptConnect team,” said Chris Baird, President of OptConnect. “We are thrilled to be working together with Graham as we continue the legacy of delivering meaningfully unique solutions for our customers for many years to come.”
R.W. Baird (www.rwbaird.com) was the financial advisor to OptConnect. Dechert LLP (www.dechert.com) provided legal services to Graham Partners on this transaction. The Dechert team was led by partner Jeffrey Legath and associates Jonathan Stott and Leen Al-Amami with support from partners Sarah Gelb and Joshua Milgrim.
© 2017 Private Equity Professional | December 14, 2017
