Private investment firm Inverness Graham has sold RacoWireless to strategic acquirer KORE Wireless Group, Inc, in an all-cash transaction.
Headquartered in Cincinnati, Ohio, RacoWireless is a leading enabler of the Internet-of-Things and machine-to-machine (M2M) wireless data connectivity solutions offering end-to-end connectivity and location aware solutions to more than 500 reselling customers. During Inverness Graham's two-years of ownership, RacoWireless executed an organic and acquisitive growth strategy that more than doubled revenue and increased EBITDA by over five times.
Inverness Graham acquired RacoWireless in a proprietary, "non-banked", transaction in September of 2012 as a result of a proactive search effort within the high growth M2M connectivity sector. Over the next two years, Inverness Graham and management strategically transformed the company from a pure-play Mobile Virtual Network Operator providing cellular connectivity solutions to a leading global Platform-as-a-Service provider, offering a full suite of end market and hardware agnostic solutions for the Internet-of-Things.
"Our success with the RacoWireless investment highlights our focus on partnering with great management teams who lead companies in growing, attractive markets where focused organic and acquisitive growth can transform their business," says Michael Morrissey, Managing Principal of Inverness Graham. "The strategic acquisition of Position Logic moved RacoWireless up the software stack and transformed its capabilities in the marketplace. Over our short hold, the company made key strategic investments in its networks, software development capability and team, building out a group of over fifty software engineers. This all occurred while delivering high double-digit top and bottom line growth, making it a very attractive target for strategic acquisition."
"The partnership with Inverness Graham worked extremely well," says Rob Adams, CEO of RacoWireless. "The Internet-of-Things is a fragmented and complex industry. We wanted a partner who could support us as we executed a focused strategy in a dynamic and growing marketplace. Inverness provided more than just the capital to grow and make acquisitions, they were our partners every step of the way."
Inverness Graham was represented by attorneys Paul Hastings LLP and banker William Blair in the sale process.
