Flip Electronics, a portfolio company of O2 Investment Partners, has acquired Resurgent Semiconductor.
O2 acquired Flip Electronics in January 2021 in partnership with founder and CEO Jason Murphy and other members of the company’s senior management team.
Flip Electronics is a specialty distributor of more than 20,000 SKUs of end-of-life (EOL), obsolete, excess, aged, and discontinued electronic components including diodes, capacitors, crystals oscillators, LEDs, microcontrollers, microprocessors, resistors, sensors, transformers, and transistors. Flip maintains warehouse facilities in Georgia, Germany, and China.
The Alpharetta, Georgia-headquartered company, founded in July 2015, maintains authorized relationships with 22 original electronic component manufacturers and supplies domestic and international companies operating in the military, aerospace, telecommunications, healthcare, and industrial sectors.
Resurgent Semiconductor is a provider of extended manufacturing for previously obsolete or end-of-life (EOL) semiconductor components. Resurgent’s products – which are used in a variety of applications in the industrial and commercial sectors – are manufactured under license agreements from original component manufacturers.
The company utilizes fabless manufacturing – a business model where a company designs and sells integrated circuits or other semiconductor devices, but outsources the actual manufacturing process to a third-party foundry – rather than owning and operating its own manufacturing facilities. In other words, the company is “fab-less” or “fabrication-less” because it does not have its own fabrication plant. The fabless model allows companies to focus on developing and designing products while leaving the capital-intensive and complex manufacturing process to specialist foundries.
“This is a significant milestone in our history and growth plans,” said Bill Bradford, the president of Flip Electronics. “Component obsolescence is one of the major challenges facing manufacturers of legacy equipment. The addition of Resurgent’s extended manufacturing services vastly expands Flip’s offering of end-of-life solutions, allowing us to support customers well beyond their last-time buy dates.”
Resurgent, headquartered near San Jose in Scotts Valley, California, was founded in 2015 by Duker Dapper. “The combination of Flip’s financial resources, sales reach, and current authorized supplier relationships will provide a powerful platform from which to grow and scale Resurgent’s business,” said Mr. Dapper.
“Resurgent’s service offering is highly complementary to Flip’s business model,” said Joe Vallee, a partner at O2. “The partnership will significantly strengthen our value proposition to customers and authorized suppliers. Furthermore, our values and mission are closely aligned with those of the Resurgent team, so we couldn’t be happier to welcome them to Flip Electronics.”
O2 makes control investments in companies with EBITDA of more than $5 million located anywhere in the United States and Canada but with a preference for the Midwest and the Great Lakes regions. The firm’s typical transaction size is $15 million to $50 million. Industries of interest include B2B services, technology, and select industrial companies. O2 is based in the Detroit suburb of Bloomfield Hills, Michigan.
© 2023 Private Equity Professional | February 23, 2023
