Private equity firm exits £33m Coventry telecoms group

Optilan

NVM Private Equity has exited from £33m turnover Coventry-based telecommunications and security systems integration provider Optilan.

The deal follows a secondary management buy-out by Blue Water Energy, which is delivering a 3.1x return on funds invested by NVM.

NVM first supported Optilan in an £18m management buy-out in 2008. Since then, under NVM’s ownership, Optilan has developed its technical capability and international footprint – opening operations in the Middle East, Azerbaijan, India and Turkey.

The business generated turnover of £33.3m in 2015, with pre-tax profits of £1.45m.

Optilan is now an international telecoms systems provider, serving the energy, transport, infrastructure and industrial sectors.

The business has grown strongly in the past three years, despite challenging market conditions for the energy sector and political volatility in some of its overseas markets.

Its expertise has seen it expand in developing markets in Asia, the Middle East and Africa. It has supplied pipeline security systems in Turkey, Iraq and India as well as providing telecoms systems to the Shah Deniz oilfield in Azerbaijan.

The group designs and builds systems for local operators as well as international companies such as BP, ABB and Petrofac.

It has continued to develop its UK business in the rail and infrastructure sectors, with large projects currently being undertaken for Crossrail, CityFibre and National Grid.

The company employs a team of 175 people at the Stonebridge Trading Estate, plus a further 42 people in its various overseas operations.

The transaction is the sixth exit for NVM in the last 18 months.

James Arrowsmith, Investment Partner of NVM, said:  “We have enjoyed seeing the business develop into a leading global telecoms solutions provider following the original buy-out.  The strategy of developing the business’s international footprint and technical capability has been highly successful, despite a challenging market backdrop, and we believe that Optilan can continue to grow from this point with the team and market presence that they now have.”

Richard Buckland, CEO and founder of Optilan, said: “James and NVM have proved to be outstanding investment partners.  They have been incredibly supportive and have used their experience and network to help us develop the capability and reach of the business since the MBO, building value for all shareholders.

“It has been satisfying to see our collective effort reflected in the strong performance of the business in the last few years and we are now positioned for further growth.    We are looking forward to working with Blue Water Energy as we move into the next phase of the company’s development.”

Key advisers to the transaction were:

Corporate finance advisers: Simmons & Company International – Nick Dalgarno, Fraser Dobbie and Aimee Colebrook

Legal advisers: Eversheds Sutherland – Antony Walsh, Wyn Jones, Alex McCarney

Financial due diligence:  BDO – David Billington and Graham Elsworth

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