Irish private equity firm Erisbeg has taken a majority stake in cyber security firm EMR Integrated Solutions.
The deal, which is subject to regulatory approval, will see Erisbeg commit to “providing finance to support further acquisitions” to EMR, the firm said in an emailed statement.
Terms of the deal were not disclosed.
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“We have been hugely impressed with the development of the business, initially in Ireland and more recently in the UK,” Erisbeg partner and co-founder Thomas Davy said. Erisbeg shares EMR’s vision for the future and is “excited by the opportunity to continue supporting the company’s growth over the next phase of its development”, he added.
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The deal is the latest in a string of acquisitions by Erisbeg in recent years. Founded by former DCC executive Thomas Davy and Blackstone alumni Alan Kerr, the business has done 17 deals since it was set up six years ago. Its latest fund is deploying about €110 million in capital at present.
“Organic growth has taken us so far, but our ambitious growth trajectory for the next five years requires external investment,” EMR chief executive Mark Quinn said. Erisbeg’s “financial strength gives us the firepower to accelerate our business growth by extending our geographic reach in Europe, developing new services and adding to our in-house expertise in designing, building and supporting smart communication networks for critical national infrastructure”, he added.
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Meath-headquartered EMR employs 60 people. lt supplies telecommunications and cybersecurity solutions across the utility, infrastructure and transportation sectors. Clients include Irish Water as well as the UK National Grid. It recorded sales of €18 million in 2022.
LK Shields, KPMG and EY advised Erisbeg on the transaction. EMR was advised by BDO and Sheehan & Co Solicitors.
Erisbeg is among a number of private equity firms that have set up in the Republic in the past decade to invest in SMEs.
These include MML Capital Ireland, an arm of Cardinal Capital, and Melior Equity Partners. The teams behind Cardinal Capital and Melior were previously involved in the €290 million Cardinal Carlyle Ireland fund that was set up in 2013 and went on to buy and sell controlling stakes in companies such as AA Ireland, Lily O’Brien’s, Payzone and Carroll Cuisine.
However, Erisbeg is seeking to invest in smaller firms. While another firm, Business Growth Fund (BGF), is also targeting small SMEs, its interest lies in taking minority stakes rather than controlling positions.
