Mid-market private equity firm LDC has completed the sale of its stake in the UK’s leading average speed enforcement business Vysionics, in a multi-million pound deal with JENOPTIK AG.
Headquartered in Frimley in Surrey, Vysionics provides automatic number plate recognition (“ANPR”) traffic enforcement, access management and information systems to a wide range of private and public sector organisations both here in the UK and overseas.
The business’ diverse customer base comprises strategic highway authorities, construction contractors, local authorities, parking contractors, rail authority and police forces, and its market-leading products and services include temporary and permanent average speed systems for road networks, journey time management systems, as well as police security and railway crossing enforcement systems.
Vysionics was established in 2010, following the acquisition of Computer Recognition Services by LDC-backed Speed Check Services. The deal brought together two of the UK’s leading suppliers of traffic management solutions, to create a global leader in the ANPR and average speed enforcement industry.
Since then, LDC has worked in close conjunction with Vysionics’ management team to implement a strategic growth plan predominantly focused on new product development, on-going investment in R&D and wider expansion into key global territories including Europe and North America.
Benefiting from improved market conditions and the realisation of significant investment in new products, Vysionics has enjoyed a particularly strong period of growth within the last year, increasing annual turnover from GBP9.3million in 2013 to GBP16.0million in 2014.
As a global leading business with an extensive international footprint, Jenoptik has annual sales of around EUR600million and is headquartered in Germany. Its specialist division, Jenoptik Traffic Solutions, operates more than 20,000 traffic enforcement systems in over 80 countries and provides a strong strategic fit with Vysionics in terms of products, services and market footprint.
The transaction provides an excellent return for LDC, delivering a money multiple of more than 2x the original investment.
The deal was completed by LDC’s South-West based team, with support from a number of regionally based advisors. The South and Wales Corporate Finance Advisory team at Deloitte advised Vysionics’ management team, while EY provided vendor due diligence and TLT were legal advisors to the shareholders.
Alistair Pendleton, Investment Director and Head of LDC in the South-West, says: “We have worked closely with Vysionic’s management team since 2010, supporting the business through a particularly challenging period of trading and helping to drive growth in key areas. With our backing, Vysionics has successfully extended its range of products and services, and secured significant new business wins both at home and in key international markets.
“The sale to Jenoptik represents an excellent outcome for LDC and the business, and we wish the management team every success as they embark upon the next phase of the company’s growth and development.”
Bruce Brain, Chairman of Vysionics, says: “LDC’s backing and strategic insight has been invaluable over the past four years, and they’ve provided unfailing support throughout both challenging and more buoyant market conditions.
“The deal with Jenoptik will enable us to build further on recent successes and leverage the sale of Vysionics products via Jenoptik’s very well established global footprint.”
Dewi Hughes, Director of Deloitte, says: “Vysionics is a highly impressive market leading company with a first class management team, an innovative product proposition and a highly regarded and recognised brand. The transaction with Jenoptik represents a very strong strategic and cultural fit and an opportunity to accelerate the global reach of Vysionics. We were delighted to have advised LDC, Bruce Brain and the other shareholders on the successful outcome and we wish the management team the very best with the next chapter.”
The sale of Vysionics to Jenoptik represents LDC’s 10th exit of 2014 and follows successful realisations with Penn Pharmaceuticals, Benson Group, NES and GVA. This year to date, LDC has invested over GBP220million of new funding, together with more than GBP26million of growth capital to support portfolio business acquisitions.
