ECI reaps 6.1x on Wireless Logic sale to CVC

Ellie Pullen
10 February 2015

Tweet
Facebook
LinkedIn
Google plus
Send to

ECI Partners has generated a return of 6.1x money on the sale of Wireless Logic, a UK provider of machine-to-machine services, to CVC Capital Partners.

The deal marks the first investment made by the CVC Growth fund, which was set up last year by a newly established CVC division called CVC Growth Partners, led by managing partner John Clark.

The fund makes equity investments of $50-200m in north American and European software and technology-focused business services companies.

Under ECI's ownership, Wireless Logic has opened its international bases in France, Germany and Spain, as well as tripled its subscriber base to around 1.5 million.

The company's turnover has also grown by 25% per year.

Debt
Ares Management and GE Capital provided a £75m financing package to support the deal, comprising £65m of unitranche and a £10m working capital and acquisition facility.

Previous funding
ECI acquired Wireless Logic in August 2011 for £38m. The firm invested via its ninth fund, which closed in December 2008 on £430m.

PwC introduced ECI to the company, according to unquote" data. The deal was structured as a management buyout.

Company
Founded in 1999, Wireless Logic is headquartered in Beaconsfield with overseas offices in France, Germany and Spain.

The company is a provider of machine-to-machine (M2M) management services such as software platform monitoring, cloud-based private network infrastructure and satellite connectivity.

Wireless Logic works with 950 application providers. The company claims to have 1.5 million subscribed connected devices across 26 European networks.

People
Oliver Tucker is the founder and managing director of Wireless Logic. Paul McCreadie is a partner on ECI's TMT team. Aaron Dupuis is a managing director at CVC, while John Clark is a managing partner in CVC Growth Partners.

Advisers
Company - Arma Partners (Corporate finance).