HKW Acquires Xirgo
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HKW Acquires Xirgo

xirgo-nf2Hammond, Kennedy, Whitney & Company (HKW) has acquired Xirgo Technologies, a provider of wireless equipment used to track, monitor, protect and control remote assets.

xirgo-nf22Xirgo provides M2M (machine-to-machine) telematics modules that support communication among devices connected to the Internet of Things (IoT) sector. M2M refers to devices other than cell phones that use wireless networks to communicate with other devices or networks. Typically, a small device known as an M2M module is embedded in a larger device that needs to communicate over the wireless network.  Xirgo’s products are used in fleet management, heavy equipment, asset tracking, usage based driving, high-risk vehicle finance, and rental applications. Xirgo is headquartered near Los Angeles in Camarillo, CA (www.xirgotech.com).

“We are excited to partner with HKW as we continue to expand our business. HKW has great respect for the technology we’ve built and taken to market, for our team, and for our culture. We believe we can move more effectively by leveraging HKW’s access to capital and resources in a way that we would be unable to do on our own or with any other partner,” said Roberto Piolanti, CEO of Xirgo.

HKW nf2Hammond, Kennedy, Whitney & Company invests in companies with revenues between $20 million and $200 million and EBITDAs between $2 million and $20 million. Since 1982, HKW has completed 53 platform management buyouts of small middle-market companies throughout North America as well as 56 add-on acquisitions. The firm was founded in 1903 and is headquartered in Indianapolis with an additional office in New York (www.hkwinc.com).

luke-phenicie-nf1“We are pleased to partner with Roberto Piolanti and the rest of the Xirgo management team as they continue to build a tremendous organization in the evolving IoT sector.  We feel fortunate they chose HKW as their investment partner and look forward to supporting them in the company’s next phase of growth,” said Luke Phenicie, Lead Transaction Partner at HKW. “Xirgo’s product differentiation and strong customer relationships combined with its talented team and industry growth prospects make this an exciting new platform investment for us.”

Near Earth LLC (www.nearearthllc.com), an investment bank specializing in the aerospace, satellite and M2M telematics sectors, represented Xirgo.

Capitala Group (www.capitalagroup.com) provided $23 million of second lien debt and equity to support the transaction.

© 2016 Private Equity Professional | December 8, 2016

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