InfoGraphic capital-raising plan turns to sale
GARDEN GROVE, Calif. -When company officials at InfoGraphic Systems assembled a book of business last summer to raise capital, selling the company was not top of mind.
Ã¢â‚¬Å“We were actually going out to raise capital to probably buy another company,Ã¢â‚¬Â said Joseph Maskrey, president of what is now known as GE InfoGraphic. Ã¢â‚¬Å“We got bought instead.Ã¢â‚¬Â
As InfoGraphic put together its book of business to raise money, its board of directors decided it would entertain purchase proposals if the price and agreement proved right. In late August, the company sent out information about itself, seeking preliminary proposals on financing by mid-September. Then GE stepped up to the plate with a strong acquisition proposal.
Ã¢â‚¬Å“We literally had several acquisition targets lined up,Ã¢â‚¬Â said John Mack, senior managing director and founder of USBX Advisory Services, which brokered the deal for InfoGraphic.
What GE saw, said Mack, was a growing access control company and the opportunity to gain a larger market share. Ã¢â‚¬Å“InfoGraphic was a uniquely strong company doing very well,Ã¢â‚¬Â said Mack. Ã¢â‚¬Å“So it was attractive to both.Ã¢â‚¬Â
Maskrey said InfoGraphic did not plan to seek a buyer for at least another two years. Ã¢â‚¬Å“This was something of a surprise to us,Ã¢â‚¬Â he said. Ã¢â‚¬Å“This was earlier than we had anticipated.Ã¢â‚¬Â
But by joining up with GE now, InfoGraphic becomes part of a growing force in the security industry. It also gains the technology expertise and deep pockets thanks to its parent company, along with broader brand name recognition by tapping into the GE name.
Ã¢â‚¬Å“We had hoped one day to become the market leader,Ã¢â‚¬Â he said. Ã¢â‚¬Å“Under GE I can see that happening.Ã¢â‚¬Â