CVC buys Wireless Logic from ECI
February 18, 2015
UK-based M2M provider Wireless Logic has a new owner following last week’s decision by CVC Capital Partners to buy the company from ECI Partners. Even though financial details of the sale were not revealed, ECI is said to have made a more than sixfold return on its investment.
Wireless Logic was formed in 1999 by managing director Oliver Tucker and sales director Philip Cole – both experienced operators in the telecoms and technology industries. During ECI’s period of investment Wireless Logic expanded internationally, opening offices in France, Germany and Spain and has nearly tripled the underlying subscriber base to around 1.5m with profit and revenue growth in excess of 25 per cent a year.
“It has been a pleasure partnering with Oliver and Phil over the past four years and working with them to deliver their vision for Wireless Logic,” said Paul McCreadie, a partner at ECI. “Since 2011, the business has achieved a huge amount and this deal adds to our strong track record in backing high growth tech businesses to expand internationally. We wish Oliver, Phil and everyone at Wireless Logic every success with their new partner as they continue to lead the M2M market in Europe.”
Wireless Logic provides secure connectivity across 26 European mobile networks and satellite. Through its “one window to all networks” platform, it overlays a range of value-added services including secure VPN, device management and global mapping. Customers include high growth companies such as Just Eat – connecting remotely-based ordering systems, Isotrak – vehicle tracking and telematics, and Verifone – chip and pin applications including payment systems for London’s black taxis.
“I would like to thank Paul and the team at ECI for the significant value that they added to help Wireless Logic become the leading M2M business in Europe,” said Tucker. “As a management team, we wanted to retain a significant portion of our equity in the company. Therefore, we sought out a partner who could help us maximise value going forward. CVC approached us before we had decided to pursue this transaction and demonstrated a clear understanding of our business and the strategic opportunity ahead. CVC’s global network, reach and resources will be tremendously supportive throughout our next phase of growth.”
CVC is one of the world’s leading private equity and investment advisory firms. Founded in 1981, it has a network of over 20 offices and over 300 employees throughout Europe, Asia and the USA. In 2014, it formed a new team – CVC Growth Partners, led by John Clark, managing partner – to target smaller growth-oriented companies through its dedicated CVC Growth Fund. The fund focuses on middle-market, high-growth companies in the software and technology-enabled business services sector. The fund primarily targets equity investments between $50m and $200m in North America and Europe.
“We are very pleased to partner with Oliver, Phil and their team to help them continue to build on their track record of growth and international expansion," said Clark.