Vector Capital Exits RAE Systems

Vector Capital Exits RAE Systems

RAE Systems, a provider of  and radiation detectors, and a portfolio company of Vector Capital, has entered into an agreement to be acquired by Honeywell for $340 million in cash. Vector acquired RAE Systems in June 2011. The closing of this transaction is expected to occur in the second quarter of 2013.

“We have had a very successful investment in RAE and partnership with the founders and management team. We are pleased to have selected a buyer for RAE that will continue to invest in the company and its products to further grow the business. RAE Systems is the most recent example in Vector’s long history of partnering with management to realize significant value by growing and transforming technology companies,” said David Fishman, a Managing Director at Vector Capital.

RAE Systems designs and manufactures gas sensors and radiation detectors. The company offers fixed and portable gas detection products, including handheld and personal chemical, compound and radiation detection instruments. The company’s products are used in energy production, refining, industrial and environmental safety, public venue safety, and government first responder markets. RAE Systems is based in San Jose, CA (

“With the full support of Vector Capital, we have broadened our product offerings, expanded our global presence, and optimized our internal operations. Our range of products, innovation in photo-ionization detection and wireless technology are highly complementary to Honeywell,” said Robert Chen, CEO of RAE Systems.

Vector Capital invests in spinouts, buyouts and recapitalizations of private or public technology businesses. The firm is based in San Francisco (

Citigroup Global Markets is acting as financial advisor to RAE Systems and Vector Capital, and Shearman & Sterling is acting as RAE and Vector Capital’s legal advisor.

© 2013 PEPD • Private Equity’s Leading News Magazine • 4-23-13

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