One Equity Partners-backed Inside Secure buys Verimatrix

The transaction will be fully funded through a combination of available cash (approximately $38m), private debt ($54m) provided by Apera Capital, and equity (€52m, approximately $60m).

US-based One Equity Partners, a PE house specialising in growth capital and acquisition financing, will participate in the equity financing, with a view to supporting the company's future development and becoming a new cornerstone investor in Inside Secure.

The transaction is expected to close in the first quarter of 2019, subject to a vote by Inside Secure's shareholders on the equity financing and customary conditions precedent. An estimated $9m earn-out should follow in the second quarter of 2019.

The firms have a 2021 objective of driving profitable growth, with revenues of $150m and EBITDA margin of 25%.

Company
Founded in 1995 and based in Meyreuil, Inside Secure is a security services provider for mobile and connected devices, including software, silicon IP and tools. It is listed on Euronext-Paris with a €76m market cap. In the first three quarters of 2018 the business posted a turnover of $29m, according to a statement from the firm. 

Inside Secure protects customers' transactions, content, applications, and communications, operating in areas including network security, Internet-of-Things, content and application protection, mobile payments and banking. Its customers include service providers, content distributors, security system integrators, device vendors and semiconductor manufacturers.

Verimatrix, founded in 2000, is a software security provider for video services. The company supports video providers by offering a data collection and analysis platform for automated real-time quality of experience optimisation, which drives security performance monitoring, user engagement and content monetisation.

Based in San Diego, Verimatrix employs 300 people in 20 countries, generating revenues of $78.7m and $14.5m EBITDA in the 12-month period ending on 30 September 2018.

People
Inside Secure – Amedeo D'Angelo (chairman, CEO).
Verimatrix – Tom Munro (CEO).

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