Since John Horn took over the helm as president of RACO Wireless the company has been on the fast track in the M2M race and it’s not showing any signs of letting up. Its latest move proves that the company intends to continue to be a service contender and with a little financial help might just get the firepower needed to achieve its goals as an acquisition machine and an M2M champion.
Horn has been very vocal that Cincinnati, Ohio-based RACO Wireless wants to change the whole M2M business again and that the M2M community is now in the right position for consolidation. With the financial backing from Inverness Graham Investments, a private equity firm based in suburban Philadelphia, and Silicon Valley Bank, both of which are making major commitments to M2M, RACO Wireless insists it has “no capital constraints to achieve its strategy.” Horn adds, “We will bring more resources to bear to accomplish that goal. The two companies are a perfect match to grow. And that means buy and build.”
According to Horn, the existing management team will continue to manage the business, but there will now be a four-board team that consists of RACO CEO Rob Adams, Horn, and two members of Inverness Graham Investments. He also insists while Inverness Graham will give advice it will not be involved in the day-to-day running of the company.
Horn will have to live up to almost ridiculously high expectations to deliver what investors are now seeking. But none of this worries him or his team. In fact, he brushes it all off acknowledging they are up to the task saying, “We have built this company internally from organic growth. Now we have no real limits. We are the disrupters and will be part of the much-needed change,” he insists.
With Inverness Graham, along with other strategic partners, Horn says, “We hope to make some key acquisitions and we will take M2M and the company to a whole new level. The first acquisition will make it obvious.”
There is no question that the announcement that Graham Investment had acquired a majority stake in the company certainly drew a lot of attention Tuesday as more and more industry observers heard the news. It begs the question, which companies does RACO intend to acquire in the M2M space and when?
Horn recently told Connected World magazine about succeeding against giants and that this provides more resources to accomplish that goal. While financial numbers were not released, it’s obvious that Inverness Graham has made a hefty commitment in RACO, at least for now, striking while the M2M iron is hot.