Information on the Target

Access-IS specializes in developing innovative, miniaturized devices that include passport and ticket readers. These technologies facilitate rapid, safe, and secure movement for individuals around the globe—an imperative need highlighted by the challenges posed by the recent pandemic. Utilizing advanced engineering techniques, Access combines document imaging, barcode reading, NFC and RFID decoding, along with contactless payment systems. Trusted by major global brands, Access devices are operational in over 200 airports, processing upwards of 100 million transactions daily.

Industry Overview in the Target’s Specific Country

The access solutions industry in the United Kingdom has experienced significant growth over recent years, driven by advancements in technology and increasing demand for efficient security measures across various sectors. The introduction of contactless systems has transformed the transportation and travel sectors, reflecting a broader global trend towards seamless user experiences.

Moreover, the UK's commitment to enhancing security measures post-pandemic has resulted in substantial investments in high-tech security solutions. Companies in this space are leveraging innovations to address emerging challenges, particularly those posed by remote operations and digital transactions.

As digital services continue to evolve, the demand for integrated, secure access devices shows no signs of slowing. The trend towards digitization across industries further emphasizes the need for robust solutions that combine efficiency with security, making the market ripe for further expansion.

Given these dynamics, businesses that focus on R&D in access technologies can expect to benefit from increased consumer spending and governmental support, making the environment favorable for sustained growth.

The Rationale Behind the Deal

The decision to invest £11 million into Access-IS was primarily motivated by the company’s potential for growth within new verticals, particularly in ID and security, and the expanding transport and ticketing sectors. The capital from this investment has been utilized to develop innovative solutions catering to global ATM suppliers and enhance overall operational capacity.

Additionally, significant funds were directed towards restructuring and improving Access's back-office infrastructure, ensuring the company is well-positioned to meet its aggressive growth objectives.

Information About the Investor

Mobeus specializes in investing in high-potential businesses, with a focus on supporting companies through their growth phases. Their investment strategy includes securing minority stakes in promising firms while collaborating with management to facilitate crucial developments that drive value creation. Mobeus's expertise in identifying lucrative opportunities has led to strong performance across their portfolio, including successful investments such as Access-IS.

With a reputation for achieving remarkable returns, Mobeus has consistently delivered positive outcomes for its clients and investors. The firm’s strategic approach to investment includes not only financial support but also providing operational insights and resources to foster business growth.

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In analyzing the investment in Access-IS, it is evident that this decision represented a sound investment opportunity. The firm showcased robust year-on-year growth, nearly doubling its revenue from £11.5 million to over £19 million between 2015 and 2019, indicating a strong market presence and operational excellence.

Furthermore, the strategic direction taken by Access-IS to diversify its portfolio into ID and security solutions captures the essence of timely market adaptation, suggesting that the company is poised for continued success. The expansion into these verticals showcases foresight and aligns with market trends highlighting increased demand for security measures globally.

The successful exit in 2020, with a sale to HID Corporation Ltd., further underscores the viability of the investment, achieving a 2.5x return on the initial investment alongside a solid internal rate of return (IRR) of 23.4%. Such outcomes reflect Mobeus’s effective investment thesis and confirm that Access-IS was a valuable asset within their portfolio.

Overall, the investment in Access-IS stands as a testament to the potential for strategic investments that align with technological advancements and market needs, marking it as a commendable move for Mobeus.

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