The Riverside Company has made a minority investment in Alcohol Monitoring Systems, a provider of electronic monitoring technologies used by state and local criminal justice agencies to monitor and manage alcohol use by criminal offenders.
Alcohol Monitoring Systems (AMS) offers a full suite of electronic monitoring products. Its SCRAM Continuous Alcohol Monitoring device is the industry’s leading transdermal continuous alcohol monitoring ankle bracelet, which monitors alcohol levels every 30 minutes. In 2013 the company launched the SCRAM Systems suite of electronic monitoring technologies, which includes GPS bracelets and remote breathalyzers. The company was founded in 1997 and is headquartered south of Denver in Littleton, CO (www.scramsystems.com).
“We’re delighted to attract this investment from a proven firm like Riverside,” said AMS CEO Mike Iiams. “This partnership adds resources and skills to AMS that will accelerate our growth and allow us to serve more customers even more effectively.”
The US legal system processes hundreds of thousands of non-violent offenders annually who are ideally suited for electronic monitoring. AMS has been growing steadily as courts and state and local corrections departments recognize the effectiveness and cost-saving benefits of AMS’s products.
“Given that jails suffer from overcrowding, and there is a high daily cost to incarcerate, solutions for non-violent offenders will become increasingly attractive,” said Riverside Partner Michael Kessler. “AMS offers safe and effective devices and monitoring solutions that provide substantial savings when compared to incarceration.”
“We’re excited about working with the outstanding management team at AMS to capitalize on its great market position,” said Riverside Principal Jeffrey Gordon. “AMS has a compelling value proposition and together we expect to grow the company significantly.”
Working with Messrs. Kessler and Gordon on the transaction for Riverside was Vice President Jay Reynolds. Riverside was advised by Jones Day, Deloitte and Liberty Advisor Group. Stephens acted as the exclusive financial advisor to Alcohol Monitoring Systems.
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $250 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 370 transactions. The firm’s international portfolio includes more than 75 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
2014 PEPD • Private Equity’s Leading News Magazine • 12-17-14
