
WALTHAM, Mass. & LONDON–(BUSINESS WIRE)–Crane NXT, Co. (NYSE: CXT), a premier industrial technology company, today announced it has signed a definitive agreement with Investcorp Technology Partners to acquire OpSec Security for $270 million in cash, subject to customary adjustments. OpSec is a global leader in brand protection and authentication solutions, serving the world’s most recognized brands, as well as government agencies and financial institutions.
Aaron W. Saak, Crane NXT’s President and Chief Executive Officer stated: “OpSec is an excellent fit with our portfolio of technologies that secure, detect, and authenticate our customers’ most valuable assets. The authentication and brand protection markets are large and growing, bolstered by secular mega trends, including the continuous rise of counterfeiting and proliferation of online marketplaces, as well as digital media and piracy. OpSec is a global leader in these markets with its proprietary technology, broad suite of solutions, and integrated offering. This acquisition will enable us to leverage our complementary expertise in anticounterfeiting technology and drive growth and sustainable value creation as a trusted partner to clients.”
Dr. Selva Selvaratnam, OpSec’s CEO, said: “We are thrilled to be joining forces with Crane NXT to continue to accelerate our growth. Together, we will be even better positioned to help our customers realize the value and ensure the integrity of their physical and digital brand portfolios, from products and content to trademarks and trust. We are extremely grateful to Investcorp for its tremendous support as we’ve scaled our business, and we look forward to building on this momentum in the years ahead.”
The acquisition will expand Crane NXT’s capabilities across the entire product and brand authentication value chain. OpSec provides its customers with a complete end-to-end offering that combines proprietary features, technologies, and expertise to meet their unique brand needs. It has more than four decades of experience in optical security and is recognized as one of the pioneers of micro lithography. It also has scalable software platforms that enable the traceability of products, manage the licensing of brand properties, and detect and enforce against online brand abuse and content infringement. With a global footprint across North America, Europe, and Asia, OpSec is uniquely positioned with the scale to support leading brands worldwide.
Financials and Closing Conditions
This agreement does not include the acquisition of Zacco, currently part of OpSec, which will remain with Investcorp. The parties intend for OpSec and Zacco to continue a business relationship post-acquisition. Excluding Zacco, OpSec expects to generate approximately $130 million in revenue for fiscal 2024. Crane NXT expects the acquisition to be accretive to Adjusted EPS in 2025 and to achieve double digit ROIC by year five, driven by the growth outlook for OpSec and transaction synergies.
The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions.
Advisors
Baird is acting as Crane NXT’s financial advisor, and Davis Polk & Wardwell LLP is serving as Crane NXT’s legal counsel. Proskauer Rose LLP is serving as legal counsel for OpSec.
About Crane NXT, Co.
Crane NXT is a premier industrial technology company that provides trusted technology solutions to secure, detect, and authenticate what matters most to its customers. Crane NXT is a pioneer in advanced micro-optics technology for securing physical products, and its sophisticated electronic equipment and associated software leverages proprietary core capabilities with detection and sensing technologies. Crane NXT has approximately 4,000 employees with global sales, research and development, and operations facilities in the United States, the United Kingdom, Mexico, Japan, Germany, Sweden, and Malta. For more information, visit www.cranenxt.com.
About OpSec Security
OpSec Security is a world leader in authentication and brand integrity with a heritage that spans four decades. OpSec serves many of the world’s leading brand owners, licensors, and media rights owners, helping them build intangible value and mitigate vulnerability across both physical and digital domains. OpSec also provides high-security and compliance solutions to governments. With their global reach and coverage, they integrate into brand operations, royalty cycles, and products, as well protecting brand identity and digital content across online marketplaces, social media platforms, websites, and beyond. OpSec brings together multiple disciplines to ensure that solutions are brand-led, practical, and effective. For more information, visit www.opsecsecurity.com.