M&A Activity Remains Strong in 1H'16 As Private Equity Firms Deploy Capital Across the Video Collaboration, Digital Signag
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M&A Soundcheck - 1H’16 M&A Activity Remains Strong in 1H’16 as Private Equity Firms Deploy Capital Across the Video Collaboration, Digital Signage and Audio Distribution Sectors intrepidib.com | Mergers & Acquisitions | Capital Markets | Strategic Advisory 11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC M&A Activity Remains Strong in 1H’16 as Private Equity Firms Deploy Capital Across the Video Collaboration, Digital Signage and Audio Distribution Sectors The first several months of 2016 generated numerous notable transactions across the sectors tracked by our Commercial & Consumer Technology team. Private equity firms are actively deploying vast amounts of un-invested capital in, and exiting from, high-quality companies clustered in video collaboration, digital signage and the audio distribution sectors. In addition, strategic acquirers remain active, executing transactions that augment technology offerings, penetrate new markets or add compelling brands. INFOCOMM 2016 is just around the corner. Join us June 4-10th in Las Vegas for another exciting show. We’d like to connect with you at the show. Contact us at [email protected] or aabramowitz@ intrepidib.com. We hope that this report serves as a useful tool for your business. As you evaluate your own opportunities, please feel free to call us at 310.478.9000 for more pointed insight. Thank you, Gary Rabishaw Adam Abramowitz Managing Director Senior Vice President Co-Head of Commercial & Consumer Technology Co-Head of Commercial & Consumer Technology [email protected] [email protected] intrepidib.com | Mergers & Acquisitions | Capital Markets | Strategic Advisory 11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC Pro Audio / Video H.I.G. Capital Acquires AVI-SPL H.I.G. Capital, a leading global private equity investment firm with $19 billion of equity capital under management, acquired AVI-SPL, Inc. from Silver Lake Private Equity, which invested in the business over seven years ago. AVI-SPL is the market-leading end-to-end provider of audio visual and video collaboration solutions for organizations of all types around the world. AVI-SPL’s services enable global communications for the modern workplace, facilitating meaningful collaboration to enhance productivity for its enterprise clients. Milestone AV Technologies Acquires Vaddio Milestone AV Technologies acquired Vaddio, a leading global manufacturer of PTZ cameras, professional AV solutions, and a full suite of Unified Communication and collaboration products for the A/V, videoconference and broadcast markets. Vaddio, based in Minnetonka, Minn., will now join the Milestone family of brands, including Chief®, Da-lite®, SANUS® and Projecta®. Vaddio was previously owned by Thompson Street Capital Partners, while Milestone is majority-owned by the Pritzker Group. Graycliff Partners Acquires Williams Sound Graycliff Partners, an independent investment firm focusing on middle-market private equity and mezzanine investments, acquired Williams Sound, a leading provider of assistive listening systems, from Cardinal Equity Partners who owned the business since 2011. Williams has a growing portfolio of products servicing the listening and audio needs of various end-markets including corporate, houses of worship, tours, government, entertainment and education, among others. Look for Graycliff to leverage Williams as a platform to acquire other niche pro A/V businesses. Almo Professional Goes Global and Acquires International Audio Visual Almo Professional A/V acquired certain assets and assumed certain liabilities of International Audio Visual Inc. (IAVI), a leading value-added global distributor in the pro A/V space with a strong focus on projectors and digital displays. As a result, Almo Corp. will become the largest privately-held professional audio video distributor in the industry and a $1.2 billion corporation. The acquisition also expands Almo globally through the procurement of IAVI’s Latin American business. Ardian Acquires d&b audiotechnik Ardian, a European independent private investment company with assets of $55 billion, acquired d&b audiotechnik, a mainstay of loudspeaker manufacturing. Ardian acquired d&b from Odewald & Compagnie and COBEPA, which first invested in the company in 2011. d&b develops and produces high-quality sound systems for mobile and permanently-installed applications. Since 2011, d&b’s sales have more than doubled from £44 million to £94 million in the financial year 2015. Cortec Group Acquires Chauvet and Sons Cortec Group, a New York-based private equity firm, acquired Chauvet and Sons, a leading developer and marketer of branded entertainment and architectural lighting products. Chauvet is a leader in the DJ market and has customers throughout the world. Following the transaction, the Chauvet family will remain a significant investor in the company. intrepidib.com | Mergers & Acquisitions | Capital Markets | Strategic Advisory 11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC Digital Signage Daktronics Acquires ADFLOW Networks Inc. Daktronics Inc. (NASDAQ: DAKT) acquired ADFLOW Networks, Inc. Founded in 2002, ADFLOW specializes in delivering digital signage and media solutions to leading retailers, convenience stores and other businesses throughout North America. Daktronics plans to integrate its sales and market channel efforts in an effort to extend ADFLOW’s digital media platform capabilities to all Daktronics customer segments. Uniguest Drives Expansion Through Acquisitions Nashville, Tenn.-based Uniguest, the hospitality industry’s leading provider of secure and fully managed guest-facing technologies, acquired three companies in the past two months as it builds its portfolio of solutions and broadens its client reach. UniGuest has been financially backed by Atlantic Street Capital since 2013. ● Showcase Technology Torrance, Calif.-based Showcase Technology provides secure, centrally managed free-to-guest and pay-per- use computer systems, printers, copiers and fax machines to the hospitality marketplace and business services segment. This acquisition drives Uniguest’s strategy of expanding its footprint within the hospitality industry and diversifying into new industry verticals. ● Ascension Software and Hospitality Division of Eleven Continuing its aggressive strategy to grow its hospitality market leadership and expand its opportunity in associated markets requiring customer or guest connectivity, Uniguest acquired two businesses in April. The Hospitality division of Eleven provides business-center managed services for the hospitality sector, and Ascension Software is a provider of remotely managed, self-service, automated business centers, public computing, in-room applications for the hospitality industry. Residential Technology Legrand Acquires Luxul Wireless Legrand agreed to acquire Luxul Wireless, adding the leading IP networking provider to its stable of brands—On-Q, Vantage, Middle Atlantic, QMotion, Nuvo and others—that cater to the custom integration industry. Luxul offers simple- to-deploy professional grade IP networking solutions for use by custom installation professionals in both residential and commercial environments. Luxul exclusively caters to integration and installation professionals and generates over $20 million in revenue. Ring Raises Series C Investment from Kleiner Perkins Ring continued to build its cash stockpiles and by raising $61.2 million in Series C funding from Kleiner Perkins Caufield & Byers (KPCB), with add-on investment from Sir Richard Branson. These new funds enable Ring to expand its line of smart video doorbells and further its international presence. Ring, the leader in outdoor home security, recently debuted its newest smart security device, RingTM Video Doorbell Pro, a premium, compact Wi-Fi video doorbell. Control4 Acquires Pakedge Control4 Corp. (NASDAQ: CTRL), a leading global provider of smart home solutions, completed the $32.7 million acquisition of Pakedge Device & Software, Inc., a leader in advanced networking products and cloud network- management services for both wireless and wired networking solutions for the connected home and business. The transaction brings to Control4 deep networking expertise, an industry-leading suite of networking, power management, and cloud-based remote management capabilities as well as an expanded sales channel of more than 1,100 additional independent dealers. Pakedge generated over $18.5 million of sales in 2015. Peter Theil and Solamere Capital Invest in Vivint Smart Home Vivint Smart Home™, a leading provider of smart home technology and services, has received a $100 million equity investment co-led by tech investor Peter Thiel and investment firm Solamere Capital. The strategic investment will help fuel Vivint’s rapid growth and product innovation as it extends its preeminent position in the growing smart home and internet of things market. intrepidib.com | Mergers & Acquisitions | Capital Markets | Strategic Advisory 11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC Consumer EVA Automation Acquires Bowers & Wilkins EVA Automation, a software platform focused on audio, visual and home entertainment solutions, acquired the iconic Bowers & Wilkins (B&W), a global manufacturer of premium speakers and other related audio products. We expect this deal to help combine