Target Information

International Cybernetics (“ICC”) is a leading infrastructure management firm specializing in technology-enabled services that enhance roadway pavement condition surveys and structural testing within the U.S. and Canada. The company has established itself as a trusted partner to state and local governments, providing essential data and insights to ensure the safety and maintenance of road and sidewalk networks through proprietary software.

Founded nearly 50 years ago, ICC plays a crucial role in extending the functionality and safety of the American road system, which has been under considerable stress in recent years. Under the leadership of Michael Nieminen, who has two decades of engineering expertise, the company continually evolves its offerings to meet the demands of modern infrastructure management.

Industry Overview in the United States

The Testing, Inspection, Certification and Compliance (“TICC”) industry is vital to maintaining the integrity and safety of public infrastructure across various sectors. In the U.S., this industry is characterized by increasing investments aimed at upgrading aging road networks and improving overall safety and performance. With a growing focus on technology integration, firms in this space are leveraging advanced data analytics and proprietary software solutions to deliver superior service offerings.

The American Society of Civil Engineers’ 2025 report indicated that the nation’s roads received a concerning D+ grade, highlighting the urgent need for elevated standards in infrastructure maintenance and management. Over 39 percent of major roads are in poor or mediocre condition, amplifying the critical demand for TICC services that ensure efficient and safe transportation.

The federal government has dedicated substantial funding to improve infrastructure, which has a propelling effect on the TICC industry. This influx of resources has fostered innovation among companies providing inspection and certification services, enabling them to scale operations and introduce cutting-edge solutions, thereby increasing competitiveness in the market.

As urbanization continues to reshape city landscapes, the demand for innovative solutions that can efficiently monitor and maintain infrastructure will only increase. Consequently, firms that can align their services with these evolving needs are expected to flourish, establishing themselves as key players in the TICC landscape.

Rationale Behind the Deal

Clarion Capital Partners, LLC has invested in ICC as part of a strategic initiative to build a comprehensive TICC services platform through acquisitions. The partnership aims to enhance ICC's service offerings, facilitating the delivery of mission-critical field testing and consulting services across the surface transportation and electrical infrastructure sectors.

By integrating ICC into its portfolio, Clarion positions itself to capture emerging opportunities within the TICC industry and address the complex demands of modern mobility infrastructure. The collaborative approach between Clarion and ICC is expected to yield substantial long-term value for stakeholders in both organizations.

Investor Information

Clarion Capital Partners, LLC is a private equity firm focused on investing in various sectors, including the TICC space, where it aims to drive growth through strategic acquisitions. The firm distinguishes itself through its comprehensive understanding of market dynamics and its commitment to building robust platforms that deliver sustained value over time.

With an emphasis on fostering partnerships with experienced management teams, Clarion is well-positioned to leverage its capital and expertise to enhance the operational capabilities and market reach of its investee companies. The firm’s approach reflects a deep commitment to collaboration and a desire to make meaningful impacts within the industries it serves.

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In assessing the investment into ICC by Clarion Capital Partners, it appears to be a strategically sound move that aligns with broader industry trends. The TICC industry is poised for growth, given the increasing urgency around infrastructure improvements across the U.S. The incorporation of ICC’s services into Clarion's existing portfolio is likely to enhance its competitive advantage in this expanding market.

Moreover, ICC’s strong track record and reputation as a trusted partner for government agencies further validate the decision to invest. With a focus on technological innovation and efficient service delivery, ICC can tap into new revenue streams that emerge as cities and states respond to infrastructure challenges.

Furthermore, the synergy between Clarion and ICC, particularly with the involvement of experienced executives like Mustafa Temiz, suggests a strategic alignment that could unlock significant operational and financial efficiencies. This collaboration presents an opportunity for ICC to accelerate its growth trajectory in tandem with Clarion's expansive vision for the TICC platform.

Overall, this deal represents a promising investment that not only addresses immediate infrastructure needs but also supports long-term growth dynamics within the TICC sector, making it a potentially lucrative endeavor for Clarion Capital Partners.

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