Industrial technology company Crane NXT announced it has signed a definitive agreement with Investcorp Technology Partners to buy OpSec Security for $270 million in cash, subject to customary adjustments. OpSec is a brand protection and authentication solutions leader, working with many top brands, government agencies, and financial institutions.
This acquisition will expand Crane NXT’s product and brand authentication value chain capabilities. OpSec offers customers a complete end-to-end offering that combines proprietary features, technologies, and expertise. It has over four decades of experience in optical security and is one of the pioneers of micro lithography. Plus, it also has scalable software platforms that enable product traceability, brand property licensing, and enforcement against online brand abuse and content infringement.
This agreement does not include the acquisition of Zacco (currently part of OpSec) – which will remain with Investcorp. The parties plan for OpSec and Zacco to continue a business relationship post-acquisition. Excluding Zacco, OpSec expects to generate about $130 million in revenue for fiscal 2024. And Crane NXT expects the acquisition to be accretive to Adjusted EPS in 2025 and to achieve double-digit ROIC by year five, driven by the growth outlook for OpSec and transaction synergies.
The deal is expected to close in the second quarter of 2024, subject to customary closing conditions.
KEY QUOTES:
“OpSec is an excellent fit with our portfolio of technologies that secure, detect, and authenticate our customers’ most valuable assets. The authentication and brand protection markets are large and growing, bolstered by secular mega trends, including the continuous rise of counterfeiting and proliferation of online marketplaces, as well as digital media and piracy. OpSec is a global leader in these markets with its proprietary technology, broad suite of solutions, and integrated offering. This acquisition will enable us to leverage our complementary expertise in anticounterfeiting technology and drive growth and sustainable value creation as a trusted partner to clients.”
– Aaron W. Saak, Crane NXT’s President and Chief Executive Officer
“We are thrilled to be joining forces with Crane NXT to continue to accelerate our growth. Together, we will be even better positioned to help our customers realize the value and ensure the integrity of their physical and digital brand portfolios, from products and content to trademarks and trust. We are extremely grateful to Investcorp for its tremendous support as we’ve scaled our business, and we look forward to building on this momentum in the years ahead.”
– Dr. Selva Selvaratnam, OpSec’s CEO
