L Squared Capital Partners announced it has acquired Functional Devices, a provider of field devices for building automation and emergency lighting systems, and is actively pursuing additional acquisitions in the peripheral components segment of the building automation and controls market.
Functional Devices is best known for its RIB® (Relay in a Box®) brand, which has become an industry standard for relays, current sensors, power supplies, and other power control products used across commercial buildings, data centers, healthcare facilities, and other high-performance environments. President and CEO Mark Fernandes, along with the existing leadership team, invested alongside L Squared in the transaction and will continue to lead the business.
The acquisition reflects L Squared’s investment focus on building automation and controls, a market supported by long-term tailwinds, including energy-efficiency requirements, electrification, growing system complexity, and accelerating data center infrastructure investment. L Squared said it aims to build scaled platforms around established brands with mission-critical products and loyal customer bases, while making incremental investments in product development and strategic acquisitions.
Functional Devices’ products play a central role in HVAC, lighting, and building management systems, where reliability and uptime are critical. As buildings become more intelligent and data-driven, demand for dependable control and relay solutions continues to increase.
L Squared plans to support Functional Devices through continued investment in product innovation, commercial expansion, and add-on acquisitions. The firm said it is evaluating a robust pipeline of opportunities and is actively seeking complementary businesses within the building automation peripheral components market to deepen its position in core categories and expand into adjacent offerings.
L Squared Capital Partners IV and its affiliates, together with Functional Devices’ executive management team, provided equity for the transaction. Apogem Capital and BMO provided debt financing. Vedder served as legal counsel to L Squared, while Harris Williams acted as financial advisor and Katten Muchin Rosenman LLP served as legal counsel to Functional Devices and Shorehill Capital.
L Squared Capital Partners is a private equity firm with more than $2 billion in assets under management, headquartered in Newport Beach, California. The firm focuses on long-term investments in growth companies across education technology, technology-enabled services and software, and industrial technology and services.
Founded in 1969 and headquartered in Sharpsville, Indiana, Functional Devices provides relay and control solutions for building automation systems. Its RIB brand is widely used by engineers, contractors, and OEMs across HVAC, lighting, energy management, and data center applications.
KEY QUOTES
“Partnering with L Squared is a significant milestone for Functional Devices. We share a long-term vision for the business that is grounded in delivering dependable, high-quality products and investing in the people who make that possible. L Squared’s belief in our team, our new product development engine, and our acquisition strategy make this a natural fit. We are excited to build on our momentum, pursue strategic acquisitions, and create even greater value for our customers, employees, and the buildings and communities we serve.”
Mark Fernandes, President and CEO of Functional Devices
“We are excited to partner with the FDI team, who have established themselves as a market standard within building automation systems. Building automation has been a core area of focus for L Squared, and we see a highly fragmented landscape of mission-critical businesses that can benefit from the scale, resources, and brand strength of the Functional Devices platform.”
Sean Barrette, Managing Partner at L Squared
“FDI fits squarely within L Squared’s core investment strategy, combining a trusted brand, critical products, and a strong operating foundation. We look forward to applying our repeatable value-creation playbook alongside the FDI team to drive the next phase of growth.”
Tyler Huez, Partner at L Squared
