SOUTH AFRICA – Carlyle, a global investment firm, has agreed to sell Amecor, a South African designer, manufacturer and distributor of security communication equipment, to ASSA ABLOY Group, a Swedish conglomerate.
The move is aimed at bolstering ASSA ABLOY’s presence in the South African security market, which the company views as a key area for growth. The financial details of the transaction were not disclosed.
“I am very pleased to welcome Amecor into the ASSA ABLOY Group. This constitutes a next step in our strategy to further strengthen our position in this important market,” said Nico Delvaux, President and CEO of ASSA ABLOY.
Founded in 1994, Amecor is an integrated security solutions provider that manufactures and provides specialized security communication equipment together with the supporting network infrastructure for signal transmission to security companies across Sub-Saharan Africa.
Amecor operators through two divisions: FSK Electronics Division: which conceptualizes, designs, and manufactures a range of radio and cellular-based communications and associated security sector products; and Sabre Networks Division: an integrated network platform that relays signals to security company control rooms.
The business is headquartered in Johannesburg and has approximately 120 employees. Amecor is responsible for the research, development, manufacture, and distribution of hardware devices and the expansion and management of network services, allowing its customers to provide superior security solutions to their clients.
Through its Carlyle Sub-Saharan Africa Fund (CSSAF), Carlyle acquired Amecor in 2019. Alterra Capital Partners (Alterra), a private equity firm formed in 2020 by former members of Carlyle’s CSSAF team, became an adviser concerning CSSAF’s investments including Amecor.
“It has been a privilege to work with Guy, Claire and the rest of the Amecor team over the last four and half years. Together we have delivered on our value creation strategy for the business and I am delighted to see its strong momentum. I wish the team all the best for the future,” Bruce Steen, Partner at Alterra, said.
During Carlyle’s ownership period, Alterra worked closely with Amecor management to shift the company’s focus from the sale of hardware to the provision of network services.
Over the past four years, it has more than doubled the subscriber base to over 600,000 monthly users, which has resulted in Amecor increasing recurring revenue to over 70% of total sales.
“This is a significant milestone in Amecor’s history and I am excited for the future of the business. Joining forces with ASSA ABLOY as a global leader in access solutions will drive innovation and allow us to expand even further,” Claire Halliday, Director of Amecor, said.
“I would like to express my thanks to Carlyle and Alterra who have been strong partners and have helped us build the Amecor business into what it is today.”
Amecor has also continued to invest in product development and has brought several new technologies to market.
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