OpSec Security Group plc, the maker of anti-counterfeiting protection technologies and services., has sold a 29.8% stake in the company to Investcorp Technology Partners. OpSec’s clients include major apparel and athletic gear makers, retailers,
pharmaceutical makers, sports franchises and government agencies.
Investcorp’s investment includes a 7.6 million pounds Sterling subscription for newly issued preference shares and common equity, as well as a US$13.0 million (8.2 million pounds) shareholder note to fully refinance the company’s outstanding bank loan facilities.
“This investment allows us to participate in the high-growth market for global brand protection and ID & banknote security technologies and solutions, which have significant barriers to entry,” said Hazem Ben-Gacem, Co-Head of Investcorp Technology Partners. “We are pleased to back OpSec’s management initiatives and strategy in taking advantage of the growth opportunities in this attractive market place.”
As part of the transaction, Investcorp will name two directors to the OpSec board: Ben-Gacem and Anand Radhakrishnan, a partner with Investcorp Technology Partners and based in New York. Both men sit on the boards of several high-growth technology companies with trans-Atlantic operations and investor bases. The additions will expand the board to six members.
The transaction comes on the heels of Investcorp’s recent investment in the identity theft and fraud protection company CSIdentity, highlighting Investcorp’s expectations for growth in the market for solutions that secure personal and corporate identities as well as intellectual property.
“Investcorp’s financial and operational expertise will give OpSec greater resources and flexibility to invest in global growth initiatives and enhance shareholder value,” said David Mahony, Chairman of OpSec. “We expect market conditions to improve in 2010, and our partnership with Investcorp will help us take advantage of opportunities that arise.”
OpSec’s products and services protect corporate brands and secure the integrity of government issued identification, banknotes and high-security documents across the world. The market for brand protection products and technology, OpSec’s largest business line, is poised to reach $11.4 billion by 2014 from approximately $6.7 billion 2009, according to estimates from the printing and publishing services firm Pira International.