Epiris buys Sepura in EUR 159m carve-out deal

Ero Partsakoulaki
15 July 2022

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Epiris has acquired Sepura, a UK-based provider of digital walkie-talkies for public safety users, from Hytera Communications, a Chinese manufacturer of wireless telecommunication equipment.

The UK-based GP will pay EUR 159.5m for the business, according to a stock exchange announcement. Hytera will use the proceeds to repay its maturing debts.

This is the twelfth investment of the British GP's Fund II, which held a final close on GBP 821m in October 2018, according to Unquote Data. Epiris, formerly known as Electra Partners, targets control positions in UK-headquartered businesses with an enterprise value of between GBP 75m and 500m, deploying between GBP 40m and 150m of equity.

"This is exactly the kind of deal that Epiris looks for. A corporate carve-out with the complexity that entails and an opportunity to transform a high-quality business in partnership with an exceptional management team," a source familiar with the situation told Unquote.

CEO Steve Barber will continue to lead Sepura whilst Malcolm Miller, with whom Epiris previously worked with as chairman of Audiotonix, will join the company as non-executive chairman, according to a press release.

Epiris will aim to increase investment in new products and technology, as well as expanding Sepura's reach into new markets.

Company
Founded in 2002 and headquartered in Cambridge, Sepura makes digital radio devices and associated ecosystems for mission-critical applications to public safety users and commercial customers in the Professional Mobile Radio (PMR) market. It uses Terrestrial Trunked Radio (TETRA), a technology that offers a voice and data platform designed for government and emergency-service users. The company is serving police, fire and ambulance services worldwide. It also supplies other sectors, including transportation and mining. Over two million Sepura devices are in use in more than 100 countries worldwide.

People
Epiris − Ian Wood (partner), Alex Fortescue (managing partner), Aaron Atwal (investment associate), Pablo Espinoza (investment associate).
Sepura − Steve Barber (CEO).

Advisers
Equity – Oakley Advisory; Travers Smith; PwC, MDW Capital.