GGRAsia – Crane NXT to pay US$270mln for OpSec Security

Crane NXT to pay US$270mln for OpSec Security

Mar 12, 2024 Newsdesk Industry Talk, Latest News

Crane NXT Co, a maker of products including ones for the gaming sector, says it has signed a “definitive agreement” with Investcorp Technology Partners to acquire OpSec Security Group Ltd for “US$270 million in cash”.

“The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions,” stated Crane NXT in a Monday press release.

OpSec provides anti-counterfeiting technologies, as well as investigative services relating to that field. It is also involved in online brand protection for governmental agencies and for corporations.

Crane NXT said the acquisition will expand its capabilities in “physical and digital product authentication and anti-counterfeiting technologies”, as OpSec has a presence in North America, Europe, and Asia.

OpSec “expects to generate approximately US$130 million in revenue for fiscal 2024,” according to the announcement.

Crane NXT said it expects the acquisition to be accretive to adjusted earnings per share in 2025, and to “achieve double digit” return on invested capital by year five.

The deal does not include the acquisition of Zacco, am intellectual property management company. Zacco was acquired last year by OpSec, but will remain with Investcorp, noted the update.

“The parties intend for OpSec and Zacco to continue a business relationship post-acquisition,” it added.

The statement quoted Aaron Saak, Crane NXT’s president and chief executive, as saying: “OpSec is an excellent fit with our portfolio of technologies that secure, detect, and authenticate our customers’ most valuable assets.”

He added: “This acquisition will enable us to leverage our complementary expertise in anti-counterfeiting technology and drive growth and sustainable value creation as a trusted partner to clients.”

Selva Selvaratnam, OpSec’s CEO, said in prepared remarks that the deal would “accelerate” the firm’s growth.

“Together, we will be even better positioned to help our customers realise the value and ensure the integrity of their physical and digital brand portfolios, from products and content to trademarks and trust,” stated Mr Selvaratnam.

In mid-February, Crane NXT reported net sales of US$1.39 billion for full-year 2023, up 3.8 percent from the prior year. Operating profit was US$286.8 million, compared with US$301.3 million in 2022.

Mr Saak said at the time of the February announcement that the company was “well-positioned” to execute its growth strategy, “both organically and through acquisitions”.