US-based Crane NXT, whose subsidiaries include Crane Currency, Crane Authentication and Crane Payment Innovations, has announced it has signed a definitive agreement with Investcorp Technology Partners to acquire OpSec Security for $270 million in cash, subject to customary adjustments.
The acquisition is expected to expand Crane NXT’s capabilities across the entire product and brand authentication value chain. The agreement does not include the acquisition of Zacco, an intellectual property management and protection company that is currently part of OpSec, which will remain with Investcorp. The parties intend for OpSec and Zacco to continue a business relationship post- acquisition.
Crane entered the brand protection market in 2020 with a portfolio of security labels and packaging films based on its proprietary micro- optics technology.
Commenting on the acquisition, Crane NXT’s President and Chief Executive Officer Aaron W Saak said: ‘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 anti-counterfeiting 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 realise the value and ensure the integrity of their physical and digital brand portfolios, from products and content to trademarks and trust.
Excluding Zacco, OpSec expects to generate approximately $130 million in revenue for fiscal 2024. Crane NXT expects the acquisition to be accretive to adjusted earnings per share in 2025 and to achieve double digit return on invested capital 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.
