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US group snaps up Sarian
AN award-winning Yorkshire electronic communications business which was founded on a kitchen table has been sold for $30.5m.
Sarian Systems was yesterday acquired in a cash deal by NASDAQ-quoted technology firm Digi International.
Under the terms of the agreement, Sarian will operate as a subsidiary of Digi International, keeping its management team and headquarters in Ilkley, West Yorkshire.
Sarian specialises in manufacturing communications devices that are vital for the day-to-day running of a business. The company helps to keep cash machines and lottery terminals operating efficiently, and it generated sales across 40 countries of around 5.25m in the year to June 30, 2007. Further significant growth is forecast for this financial year.
Sarian was founded by Andy Hood and Robin Hudson in 1999 in Steeton, near Keighley, on a kitchen table. It received early-stage funding from YFM Private Equity (YFM).
The company moved to Ilkley in 2000. Since then staff numbers have risen from four to 36 and it has gained a number of blue chip customers including American Express, Travelex and BP Oil as well as major telecommunications and cash machine operators. Sarian products are used in more than 75 per cent of UK petrol stations. It is the preferred supplier to companies responsible for 80 per cent of the worldwide lottery market.
The firm featured in the 2006 Sunday Times Microsoft Tech Track 100 as one of the UK's fastest growing technology companies. Sarian was also named Yorkshire Post Small Business of the Year in 2006, and was one of Deloitte's Europe Middle East and Asia Fast 500 Companies in 2007.
The company provides telemetry systems, which transmit information to enable heating and lighting systems to work more efficiently. For example, Norwegian electric power supplier Hafslund has used Sarian's equipment for a "street lighting when it's needed" scheme. Motion sensors ensure when the-re's no traffic, there's no lighting.
Digi International's global presence will enable Sarian to reach new markets in North America, South America and Asia-Pacific. The deal will lead to economies of scale in purchasing and improved supplier relationships. Andy Hood, managing and technical director of Sarian, said: "With the great cultural and technical fit we see Digi as the ideal partner to take the fast growing business that we have in Europe, Scandinavia and Southern Africa into many other geographic regions."
Joe Dunsmore, chairman, president and chief executive of Digi, said: "Financially, we're acquiring a high-growth, profitable wireless business that can be expanded from Europe into other parts of the world."
He added: "We have very similar corporate cultures and vertical go-to-market strategies, so integration will be straightforward and with Sarian's strong European engineering and sales presence, we're immediately increasing the international content and capabilities of our business."
David Gee, investment director at YFM, added: "It was our privilege to be involved in their journey from start-up to a successful international business. This demonstrates what can be achieved with the right combination of technical and commercial skills together with good old Yorkshire grit and determination".
Dave Irwin, of BTG McInnes Corporate Finance, who advised on the deal together with Sonia Alghita, said: "This is a great Yorkshire success story."
Other advisers involved in the deal included John Hamer and Mark Whittaker of Walker Morris and Clare Mackintosh of Keeble Hawson.
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