OptConnect

Private Equity Manager (GP)

Case study

About the company

OptConnect is a provider of wireless internet connectivity solutions for unattended equipment such as kiosks, smart vending, digital signage and ATMs. It enables a reliable Internet of Things (“IoT”) connection to provide a cost-effective and dependable platform for customers.

Investment rationale

• OptConnect has a resilient business model with predictable recurring revenues, healthy margins and a strong market position.
• The company’s total addressable market is projected to grow at an annual rate of 15% to 2025.
• The growth of the IoT market is likely to result in an increasing number of devices requiring wireless connections to the internet.
• Graham Partners originally invested in the company in 2017 and has focused on growing the business through new product innovation, expansion into new markets as well as the completion of an add-on acquisition.
• The manager has grown the number of installed products from 80,000 in 2017 to over 480,000, representing an annual growth rate of 43%.

Active management and value creation

Graham Partners is a specialist in the technology sector, with a particular focus on industrial technology. The manager sees a number of routes to further value creation including accretive M&A, increased operating leverage and earnings growth.