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Lyceum Capital commits £20m to M2M & IoT buy and build

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Lyceum Capital, the leading investor in UK B2B services and technology companies, has announced that it has committed £20 million to a new buy and build strategy in the Machine to Machine (M2M) & Internet of Things (IoT) market, commencing with the acquisition of Wireless Innovation, a UK-headquartered M2M managed services connectivity provider.

Gloucester-based Wireless Innovation provides connectivity as a managed service via its own platform to a range of end user clients. The business specialises in M2M data connectivity working in partnership with satellite and cellular connectivity providers across the globe.

Wireless Innovation’s clients are based in over 100 countries and across a wide range of sectors including renewables, electricity, water, oil & gas, telematics, aviation and marine. Clients include EDF Energy, Iberdrola and Scottish Water.

Edward Spurrier, the former CEO of Alternative Networks, has joined as chairman and will lead the acquisition strategy alongside CEO and founder of Wireless Innovation Phil Rouse. Lyceum will work with the management team to capitalise on the significant opportunities for acquisition in this fast-growing market.

Commenting on the transaction Simon Hitchcock, partner at Lyceum, said: “Given its growth and fragmentation, the M2M and IoT connectivity market represents an attractive investment opportunity. Wireless Innovation has created an excellent connectivity platform through significant investment and development over a number of years. We look forward to partnering with Phil to scale the business both organically and through acquisitions.” He added, “Wireless Innovation is Lyceum’s third off-market platform investment in 2017 and further demonstrates our ability to identify and transact highly attractive technology and B2B outsourcing investments.”

Wireless Innovation founder and CEO, Phil Rouse, said: “Over the past 13 years we have built a unique connectivity platform able to manage integrated cellular and satellite services seamlessly. Following five years of consistent double-digit organic growth, I am delighted to be partnering with Lyceum to continue our growth strategy and further accelerate it through acquisition. I have been deeply impressed by the calibre and expertise of the Lyceum team and am looking forward to working with them.”

Luke Kingston, Director in Lyceum’s origination team commented: “Wireless Innovation operates in a highly-fragmented market, both in the UK and internationally. We have committed significant additional capital to support Phil and the team in executing their ambitious acquisition strategy and are in active dialogue with several potential target businesses.”

The Lyceum team comprised Simon Hitchcock, Luke Kingston, Tom Maizels, Anne-Claire de Pompignan and Geoff Neville. Hitchcock and Neville will join the board.

Wireless Innovations was advised by BCMS and Harrison Clark Rickerbys.

BCMS Lead Advisor James Pugh commented: “With such strong interest in this market, we were able to generate a range of acquirers to give the founder shareholders lots of options. But ultimately, Lyceum’s ambitious plans to support Wireless’ growth won the day. We are pleased to have been able to help Wireless move ahead as consolidation of the market gets underway, and will watch this industry with interest.”

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Posted Sep 2017
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