LogicMark, a portfolio company of Promus Equity Partners and Generation3 Capital, has been sold to publicly traded NXT-ID for $20,000,000 in cash and $900,000 of stock and warrants. In addition, LogicMark’s selling equity holders may be paid an earn-out of up to $6,500,000 based on achieving certain performance goals within the next 18 months. LogicMark was acquired by Promus and Generation 3 in December 2011.
LogicMark is a designer and manufacturer of personal emergency response systems (PERS) that provides two-way voice communication technology directly through a medical alert pendant. Brands include CaretakerSentry, Sentry Pal, and Life Sentry. The company, led by its president Kevin O’Connor, has a staff of 22 full-time employees and 5 independent contractors. LogicMark was founded in 2006 and is headquartered in Louisville (www.logicmark.com).
In Fiscal 2015, LogicMark had revenue of $11.1 million and net profit of $3.1 million. In the first quarter of 2016, revenues were $3.3 million and net profit was $1.0 million.
NXT-ID (NASDAQ: NXTD) is a biometrics and authentication company that is focused on products and services that have a need for biometric (facial and voice recognition) access control. The company was founded in 2011 and is based in Oxford, CT (www.nxt-id.com).
Promus Equity Partners is a private equity investment firm affiliated with Promus Holdings, a multi-family asset management firm. Promus targets lower middle market companies with EBITDA’s of $15 million or less. Sectors of interest include consumer products, food & beverage, industrial products, manufacturing services, specialty materials, distribution, and business services. The firm is based in Chicago (www.promusequity.com).
Generation3 Capital invests in companies with up to $30 million in revenues that are active in the security; automatic identification and data capture and collection; life safety; and custom electronics sectors. Generation3 is based in the Chicago suburb of Buffalo Grove (www.gen3cap.com).
Chicago-based investment bank Livingstone (www.livingstonepartners.com) was the financial advisor to LogicMark.
© 2016 Private Equity Professional • 7-29-16
