2 Twin Cities Tech Firms Are Acquired
Two Minnesota companies—Eden Prairie-based Milestone AV Technologies and Minnetonka-based Network Instruments, LLC—were acquired in separate deals this week.
Eden Prairie-based Milestone AV Technologies acquired
Pritzker Group Private Capital, a private investment firm with offices in Chicago and Los Angeles, purchased Eden Prairie-based Milestone AV Technologies for an undisclosed sum in a deal that closed Wednesday.
Pritzker Group purchased the audio-visual provider from The Duchossois Group, Inc.—a privately held Elmhurst, Illinois-based company with holdings in the consumer products, technology, and service sectors—which will retain a significant interest in Milestone and continue to have representatives serve on the company’s board.
“Our acquisition of Milestone demonstrates Pritzker Group Private Capital’s strategy of investing in clear market leaders with excellent management teams,” Managing Partner Tony Pritzker said in a statement. “Together with the Milestone management team, we [the Pritzker Group and the Duchossois Group] have a clear path forward that continues the company’s long history of new product innovation, international growth, and add-on acquisitions.”
A Pritzer Group spokeswoman told Twin Cities Business that Milestone’s operations will proceed as normal (current employees will continue their work and the company will retain its name). She declined to disclose either company’s employee count.
Milestone designs, markets, and distributes audio-visual products for consumer and commercial use. Its products are sold primarily under the Chief, Da-Lite, and Sanus brands. The privately held company maintains offices in the United States, Europe, and China and serves approximately 5,000 AV dealers, consumer electronics retailers, mass merchants, and original equipment manufacturers globally.
Minnetonka-based Network Instruments sold for $200 million in cash
Thoma Bravo, LLC, announced Wednesday that it will sell Network Instruments, LLC—a Minnetonka-based provider of cloud, data center consolidation, virtualization, and other IT services—for $200 million in cash to Milpitas, California-based JDS Uniphase Corporation (JDSU). The deal is expected to close by the end of January.
JDSU manages a portfolio of technology companies (including network management, security, and anti-counterfeiting companies) in approximately 90 countries. The company reported approximately $1.7 billion in 2012 revenue.
Thoma Bravo, a private equity investment firm with offices in Chicago and San Francisco, currently manages a series of private equity funds representing more than $4 billion of equity commitments. The firm obtained controlling interest in Network Instruments in April 2012.
“Through [Thoma Bravo]’s partnership with Network Instruments’ management, we built upon the company’s market-leading technology and customer base, supported new product introductions, and accelerated revenue growth,” Thoma Bravo Managing Partner Seth Boro said in a statement.
Network Instruments currently employs 125 and reported annual revenue of approximately $40 million in 2012. The company maintains 25 locations worldwide.
Douglas Smith, president, CEO, and co-founder of Network Instruments, said that the acquisition of his company will result in “considerable benefits” for its customers.
“JDSU’s commitment to product innovation and its leadership position with service providers will provide Network Instruments with a strong entry into the carrier market for performance management solutions,” Smith said in a statement. “In turn, our robust product line and strong relationships with our enterprise channel partners will benefit JDSU as we bring our products under the JDSU brand.”