Inflexion announces sale of Halo for $715m generating a 6x money multiple
Inflexion is pleased to announce it has completed the sale of its investment in Halo Technology Group, one of the world’s largest providers of electrical, electronic and fiber optic connectors and interconnect systems, to Amphenol Corporation, one of the world’s largest providers of electrical, electronic and fiber optic connectors and interconnect systems. The transaction generated a 6x money multiple and 53% IRR for investors in Inflexion funds and follows a four-year partnership which supported transformational acquisitive growth and saw profits increase by just under ten times.
The announcement marks the eighth divestment for funds managed by Inflexion this year, including the recent successful exits of Medivet, Huws Gray and Kynetec.
Inflexion created Halo in 2017 with the buyout of UK business ProLabs in mid-2017 and its transformational acquisition of AddOn Computer Peripherals in the US less than six months later. The firms continued to use their existing brands, but operate under the California-headquartered Halo umbrella, benefitting from complementary customer bases, production facilities and sales offices in the US, Europe and Asia. Further M&A included Benelux-based Skylane Optics and Solid Optics, as well as Aria Technologies in the US to expand Halo’s product offering into optical cabling. These were all sourced, negotiated and executed by Inflexion. Inflexion’s in-country experts in India and Brazil supported organic international expansion in those countries, with the Indian office introducing Halo to the country’s number one telecommunications company, delivering significant revenue to the business.
Halo’s journey illustrates how thoughtful international M&A can create world-class companies with the right support. Bringing together two complementary businesses across two continents created a strong base from which Halo grew into the world’s clear leader in a large and growing market. We are confident the future is very bright for them with Amphenol.
The last four years have been tremendous in terms of what we have achieved. Inflexion’s expertise and support in international growth and M&A has been invaluable, enabling us to grow substantially faster than had we undertaken the ambitious journey ourselves. We’d like to thank Inflexion for being such supportive partners.