Lyceum Capital commits £20m to Wireless Innovation

Lyceum Capital (now known as Horizon Capital), a leading investor in UK B2B services and technology companies, 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. BCMS advised the shareholders of Wireless Innovation on the transaction, which completed in 2017.

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.

“I have nothing but respect and gratitude for the whole of BCMS” – Jeff Martin, Wireless Innovation

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.

Deal insights

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.”

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.”

Perspectives on BCMS

Jeff Martin, former Commercial Director at Wireless Innovation and an active member of The Fellows Group, commented on BCMS’ role in the transaction: “When profiling advisors, our accountants advised that BCMS’ international reach would be an advantage to a global company such as Wireless Innovation. I have nothing but respect and gratitude for the whole of BCMS. It was most definitely a team effort that really got us to the point we wanted to achieve and ultimately did achieve.”