Allied Universal has announced a significant strategic transaction, selling a majority stake in its subsidiary, AMAG Technology, to Shore Rock Partners. This move aims to provide AMAG with greater autonomy and flexibility to focus on its product development and offerings in the high-security sector. Allied Universal will retain a substantial minority interest, signaling continued support for AMAG’s future growth.
Key Takeaways
- Allied Universal sells a majority stake in AMAG Technology to Shore Rock Partners.
- AMAG Technology will operate with increased autonomy to focus on product development.
- Allied Universal retains a significant minority interest, indicating ongoing support.
- David Sullivan will transition from AMAG President to CEO under the new ownership.
- Shore Rock Partners, a critical infrastructure-focused investor, leads the acquisition with strategic backing from BellTower Partners.
Strategic Rationale Behind the Spin-Off
Steve Jones, Global Chairman and CEO of Allied Universal, explained the strategic decision to separate AMAG Technology. "Because the company is an embedded software and hardware platform, we determined it would be best for AMAG’s long-term growth to separate from our services-based business model, giving it more autonomy and flexibility to focus on development of its products and offerings," Jones stated. This separation is intended to allow AMAG to concentrate on enhancing its product portfolio, evolving service models, and expanding its capabilities in protecting people, identities, and assets globally.
New Leadership and Investment Focus
Under the new ownership structure, AMAG President David Sullivan will assume the role of CEO. Shore Rock Partners, along with strategic backing from BellTower Partners, plans to invest in AMAG to deepen customer and channel relationships and advance its product roadmap. Ashton Wackym and Sebastian Levy, co-founders of Shore Rock Partners, expressed enthusiasm for the partnership, highlighting AMAG’s established trust in demanding environments and its strong market position.
Commitment to Customers and Future Growth
All parties involved – Shore Rock, Allied Universal, and AMAG – are committed to ensuring a seamless transition for customers, integrators, and partners. AMAG’s day-to-day operations, support resources, and customer-facing teams will remain unchanged. Sullivan emphasized that Shore Rock’s long-term approach aligns with AMAG’s commitment to reliability and innovation, with the investment poised to strengthen its platform and deliver solutions for evolving high-security needs. The private capital raised for the acquisition was reportedly oversubscribed, indicating strong investor confidence.
Sources
- Allied Universal spins off AMAG Technology in strategic deal with Shore, Security Systems News.
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