Private equity firm Lindsay Goldberg has sold Crane Currency, a developer of security technology for money, to Crane Co. for $800m.
This sale, which was made in a cash free and debt free basis, represents around 8.5x the company’s estimated EBITDA, expected to hit $94m. The company is set to hit around $500m in sales for 2017.
Founded in 1801, the company develops micro-optic security technology for banknotes of central banks across the world. Crane Currency’s solutions are used by over 50 banks to ensure the protection and validation of currency.
Through the partnership, the companies will be able to offer end-to-end currency and security solutions from banknote design and printing through to validation.
Crane Co president and CEO Max Mitchell said, “Crane Currency is the fastest growing, fully integrated global currency provider in the growing global banknote supply and security industry. Making it part of Crane Co. is a logical extension of our expanding presence in the currency and payment markets.”
Last year the security technology sub-sector was dominated by the North American market, with over three-quarters of funding going to the continent. As a part of the infrastructure and enterprise software sector, security technology represents the second biggest vertical, just beaten by banking infrastructure.
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