EMK Capital to Acquire Cardo Systems from Fortissimo Capital and Founder Dr. Abraham Glezerman
Cardo Systems (News - Alert) ("Cardo", the "Company"), the industry pioneer and global market leader in wireless communication systems for groups and individuals in motion, today announced that EMK Capital has acquired Cardo Systems from Fortissimo Capital and Dr. Abraham Glezerman, its Founder and Chairman. Financial details of the transaction were not disclosed.
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Cardo designs and markets wireless mesh communication systems for motorcycle riders, skiers, site workers, and other groups and individuals in motion. The Company's innovative products backed by proprietary, cutting-edge technology allows groups to communicate wirelessly with one another and connect safely to hands-free services (e.g. mobile phone, music streaming, radio and GPS). Cardo is a premium brand that addresses a global enthusiast market, and its products are sold in over 80 countries. Headquartered in Israel, with operations in the Americas, Europe and Asia, Cardo employs over 100 people worldwide.
Dr. Abraham Glezerman founded Cardo in 2003. A year later, the newly formed company was the first to introduce personal Bluetooth-based communicators to the motorcycle industry, adding a completely new product category to this accessory market. To date, the company sold over 6 million communication devices world-wide.
"The sale of Cardo to EMK signifies a significant milestone in the Company's record of achievements," said CEO Alon Lumbroso. "Over the past few years, Cardo has evolved into a successful, high-growth, profitable company serving the wider wireless communications market for groups and individuals in motion. Today Cardo is the clear technology leader in its field, with a global presence."
"The last four years have been an epic ride, fueled by a world class management team, cutting-edge product innovation, and outstanding teamwork," said Yual Cohen, Managing Partner at Fortissimo Capital. "We had the privilege of partnering with Dr. Abraham Glezerman who founded a fantastic business built on Israeli innovation and creativity. We saw an opportunity to leverage Cardo's premium brand and superior product offering to accelerate its growth worldwide and into new products. Since our investment, the business has quadrupled in revenues and doubled in headcount. We thank Alon Lumbroso, who took the wheel at Cardo two years ago, and the entire management team for riding with us on this great journey."
"Leading Cardo's evolution from an idea to a leading global brand was a unique experience," said Founder and Chairman, Abraham Glezerman. "Its success could only have come about thanks to the ever-inspiring dialogue with millions of customers worldwide and due to the creativity, dedication and professionalism of the immensely talented people who work at Cardo and who have contributed to the company's growth throughout the years. Once these core company assets met and merged with the entrepreneurial whirlwind of Fortissimo Capital, there was no stopping, and this is further demonstrated by Cardo now becoming a proud member of the EMK Capital family of companies."
"EMK is delighted to have acquired Cardo," said EMK Capital. "We have been deeply impressed by the track record of innovation at Cardo, and the continuous investment in research and development to produce world-beating products. We are looking forward to working closely with the Cardo team to help take the business to new heights. EMK's vision is to support top class management teams to achieve transformational growth and build world class businesses which are leaders in their markets."
Lincoln International and Discount Capital served as exclusive financial advisors to Fortissimo Capital and Dr. Abraham Glezerman, and Meitar provided legal counsel. GCA Altium served as exclusive financial advisor to EMK Capital, and Meitar provided legal counsel.
About Cardo Systems
Cardo Systems specializes in the design, development, manufacturing and sale of state-of-the-art wireless communication and entertainment systems for groups and individuals in motion. Since inception, Cardo has pioneered innovations in Bluetooth mobile communication systems for motorcyclists, skiers, site workers and more. The company's world leading products are now available in over 80 countries.
About EMK Capital
EMK Capital is a private equity firm with a proven strategy of investing in mid-market businesses where EMK can support transformative growth. EMK Capital is currently investing out of Fund II, which closed at €1.56 billion in June 2020. For further information about EMK please visit: www.emkcapital.com.
About Fortissimo Capital
Fortissimo Capital Fund is a private equity group, established in 2004, that invests primarily in technology and industrial companies and works with management to expedite growth. Fortissimo raised $1.6 billion across five funds. A few notable portfolio companies that the fund exited include: Kornit Digital (NASDAQ: KRNT), SodaStream (NASDAQ: SODA later sold to PepsiCo), IncrediBuild (News - Alert) (majority stake sold to Insight Partners), Diptech (sold to Ferro), Nur Macroprinters (sold to HP), AOD (sold to Primus), Cadent (sold to Align Technology), Biological Industries (sold to Sartorius), and Starhome (News - Alert) (sold to Tomia Global).
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