International law firm Reed Smith has advised the shareholders of Red Box Recorders Limited, global provider of voice- and data-recording solutions, on their £14 million management-buyout transaction, backed by ISIS Equity Partners, a respected mid-size UK private equity house.
Red Box Recorders Limited was founded in 1998 by Iain Worthington and Andrew Jackson. It is one of the largest and fastest growing independent companies in the US$2 (£1.3) billion global voice-recording market, which offers a viable alternative to the large corporate groups that also compete in the market.
Demand for voice-recording services continues to grow strongly, primarily driven by increased regulatory and compliance requirements across a variety of sectors, in particular financial services, which is Red Box’s largest market. A number of its clients are multinational businesses and while the UK has been Red Box’s largest market, it is expanding fast in Asia Pacific with the US too offering excellent growth opportunities.
Reed Smith’s Perry Yam, head of private equity for Europe and the Middle East, led the multi-disciplinary team that included James Cross (senior associate, private equity), Emilia Valvano (associate, private equity), Huw Morris (senior associate, media and technology), Carl De Cicco (associate, employment), Caspar Fox (partner, tax), Annette Beresford (associate, tax) and trainees Kalish Mullen and Colin Cochrane.
Commenting on the deal, Perry Yam said:
“It was a pleasure to act for the selling shareholders on the sale to ISIS Equity Partners. We worked closely with Cavendish Corporate Finance in helping to deliver the sale for our clients. This is an example of the broad range of mid-market private equity transactions on which Reed Smith’s private equity team acts: the sale of owner/manager businesses to private equity; venture and development capital; management buyouts; leveraged buyouts; bolt-on acquisitions; auction processes; spin-outs; and public-to-privates. This is also an example of the application of Reed Smith’s significant and deep sector strengths (whether it be in media and entertainment; financial services; energy and natural resources; or health care) in servicing our private equity clients.”
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Note to Editors:
About Reed Smith
Reed Smith is a leading international law firm, with more than 1,800 lawyers in 25 offices throughout Europe, the Middle East, Asia and the United States.
About the Private Equity Team
Reed Smith's private equity team comprises more than 60 transactional lawyers practising throughout Europe, the United States, the Middle East and Asia. Our team members operate as leaders in their local jurisdictions, and apply a global perspective working closely with colleagues skilled in tax, securities, intellectual property, employment and benefits, corporate counsel and compliance, and other areas of law.
About Red Box Recorders Limited
Red Box Recorders is a global provider of voice- and data-recording solutions that solve often technical and complex business challenges in the most simple and effective manner possible. In the financial services sector the company works with four of the world’s top ten banks, as well as all of the leading global brokers. Elsewhere, the company’s technology has been deployed by 21 per cent of FTSE 100 companies, whilst almost half of the police forces in England and Wales use a Red Box solution along with a growing number of contact centres and emergency services organisations worldwide. Key clients include Mitsui Bussan Commodities Ltd, Kiatnakin Bank, Bank of China, Hong Kong Jockey Club, Abercrombie & Kent, New York Transportation Authority, The Emirates Group, Patterson Medical, and Express Gifts. Red Box also works with a global network of technology and strategic partners to deliver its fully-integrated services. These include Microsoft, Mitel, Avaya, Aastra, ShoreTel, Alcatel, Motorola, Cassidian, Speakerbus, IP Trade, Panasonic, Samsung, Cisco, BT, Orange Business Services, Blackberry and Siemens.
Red Box has a strong track record of continued turnover and profit growth and benefits from a significant recurring revenue stream. Over the past financial year, the company recorded growth of around 25% in turnover and EBITDA.
For further information please visit www.reedsmith.com or contact Jeyda Star (PR Manager EME) on +44 (0)20 3116 2571.