Francisco Partners takes tagging company private

A consortium led by the specialist technology investor will pay around £53m for London-listed Dmatek, an Israel-headquartered company which provides tagging services for monitoring both criminals and the elderly.

A consortium led by private equity firm Francisco Partners this week agreed a £52.9 million (€54.9 million; $76.6 million) take-private of London-listed technology company Dmatek. The 215 pence per share offer represents an 82 percent premium to the firm’s share price in October, the firm said in a statement.

Tagging: an increasing element of law enforcement

Dmatek is headquartered in Tel Aviv, Israel, and provides “people monitoring technologies” such as tagging devices to monitor the movements of prison inmates and sex offenders as well as monitor residents of care homes for the elderly.

In August Dmatek released its 2008 interim results, reporting a 29 percent increase in revenue on the same period of 2007 to $26.3 million. More than half the firm’s revenues come from US sales.

The consortium of buyers, which includes venture capital firm Sequoia Capital Israel and Dmatek’s chief executive Yoav Reisman, hope to complete the delisting by the end of March 2009.

Francisco Partners is a technology-focused investment firm with offices in San Francisco and London. It makes majority and minority investments in private companies, public companies and divisions of public companies, with transaction values ranging from $30 million to $2 billion.

Following this week’s announcement, shares in Dmatek leapt from £1.32 to £1.99.