Lyceum Capital, a UK private equity firms specialising in B2B services and technology, announced the acquisition for an undisclosed sum of Wireless Innovation, a UK-headquartered machine-to-machine (M2M) managed services connectivity provider.
The acquisition marks Lyceum Capital’s first investment in the M2M/IoT sector and is part of the company’s £20 million (€21.67 million) commitment to acquire businesses in this space. The investment will enable Wireless Innovation to maximise growth opportunities in the global M2M market while adding new capabilities to its technology platform.
Wireless Innovation provides data connectivity for remote M2M environments by integrating satellite and cellular communications. Working in over 100 countries and across industries including renewables, electricity, water, oil and gas, telematics, aviation and marine, it allows systems integrators and application providers to securely manage, monitor and extract data from their networks.
With the number of user cases for M2M and IoT growing, demand for enterprise connectivity is on the rise. Yet there are many concerns within the industry regarding data transmission and security. Wireless Innovation’s platform gives customers complete control via private networks, ensuring all data is delivered reliably and securely. Wireless Innovation’s deep technical expertise, coupled with its ability to securely connect devices across multiple geographies, was key to Lyceum Capital’s decision to invest in the company.
“The growth in M2M and IoT communications has been stunted over the last few years, due to its high cost base. Wireless Innovation’s approach addresses these affordability challenges and offers a more secure communications infrastructure, which will unlock more use cases and drive significant growth,” said Simon Hitchcock, partner at Lyceum Capital.
“Given its growth and fragmentation, the M2M and IoT connectivity market represents an attractive investment opportunity for Lyceum Capital. We are looking forward to helping Wireless Innovation build on its excellent connectivity platform, as well as expand and grow in this market with not only our investment, but with further add-on acquisitions.”
“Over the past 13 years we have built a unique connectivity platform able to manage integrated cellular and satellite connectivity seamlessly. Following five years of consistent double digit organic growth, I am delighted to be partnering with Lyceum Capital to continue our growth and further accelerate it through acquisition – especially as we look to expand our platform capabilities with new partnerships,” said Phil Rouse, CEO and founder of Wireless Innovation.
Edward Spurrier, the former CEO of Alternative Networks, has joined Wireless Innovation as chairman and will lead the acquisition strategy alongside Rouse. Simon Hitchcock and Geoff Neville from Lyceum Capital will join the board.
Lyceum Capital is investing between £10m (€10.83 million) and £75m (€81.25 million) in fast-growing companies. It has backed more than 135 businesses and provided over £1.5 billion (€1.63 billion) in funding since its inception 18 years ago.