Notable Consumer Electronics M&A Transactions
Merus Audio, a developer of audio amplifiers, was acquired by Infineon Technologies (ETR: IFX), for an undisclosed amount on February 20, 2018. The acquisition will enable Infineon to offer its customers a comprehensive and leading-edge Class-D Audio amplifier portfolio addressing the most demanding applications.
Keltron, a manufacturer of security systems, was acquired by Valcom (PINX: VLCO) for an undisclosed amount on February 14, 2018. The acquisition enables the acquirer to enhance life safety event management services.
Barracuda Networks (CUDA), a provider of online security products and services designed to secure all threat vectors on-site or in the cloud, was acquired by Thoma Bravo through a $1.6 billion public-to-private LBO on February 12, 2018. Barracuda will operate as a privately-held company and continue to focus on email security and data protection services. The deal will be supported by US$774 million of equity, for total capitalization of US$1.534 billion. This represents an EBITDA multiple of 41.85x and a revenue multiple of 4.54x.
Huami (HMI), a manufacturer of fitness tracking wearables designed to connect biomechanical signals and daily activities with smart data services, raised $110 million in its initial public offering on the NYSE stock exchange under the ticker symbol of HMI on February 9, 2018. A total of 10,000,000 ADS were sold at $11 per share. After the offering, the company had 237,736,467 shares issued and outstanding valuing the company at $653.77 million. The total proceeds, before expenses, to the company was $110 million. The underwriters were granted an option to purchase up to an additional 1,100,000 ADS from the company to cover over-allotments, if any. The company intends to use the proceeds for research and development of products, services and technologies, selling and marketing and general corporate purposes and working capital and potential strategic investments and acquisitions.
Elatec, a manufacturer of electronic components, was acquired by Summit Partners through an LBO on February 7, 2018 for an undisclosed sum. The company specializes in designing and manufacturing of close proximity contactless radio frequency identification products, kiosk display systems, near-field communication devices, sim cards reader/writers that are highly configurable and are used in numerous applications and OEM systems including secure printing, time attendance, handheld, physical access, manufacturing, dispensing, kiosks, point-of-sale and (enterprise) single sign-on (E)SSO. The company intends to use the funds for continued, accelerated growth, bringing its solutions to new customers, new verticals and new geographies. The company was recapitalized after the transaction.
OnlineTechStores.com, a retailer of computer peripheral equipment, received an undisclosed amount of development capital from Blackford Capital on February 12, 2018. Fifth Third Bank, with support from syndicate partners Union Bank and Zions Bank, and OFS Capital Corporation provided debt financing for the transaction.