Press Release
Capstone Initiates Coverage in Public Safety Technology
Boston, MA - September 30, 2004 - Capstone Partners LLC, a national middle-market investment banking advisory firm, recently released a research report on the Public Safety Technology (PST) industry. Gavin Long, Head of Capstone’s research, commented, “We believe that the PST industry is in a dynamic stage of growth. Homeland Defense funds are making their way to state and local agencies; in turn, public safety spending is hitting record levels. Large public players are becoming more aggressive in their attempts to secure a leading position in this market.”
There is no question that the public safety industry is experiencing a significant transition period. Anthony Graham, President and COO of Archonix Systems, stated, “Capstone has selected an opportune time to initiate coverage of the public safety industry. The industry is witnessing rapid change as accelerating information needs for first responders creates both opportunity and challenges to industry participants. We are in a period of rapid growth and industry consolidation that will soon determine which firms rise to the forefront of this large and growing industry and which firms fade to obscurity.” Dan Crawford, former President of Printrak (acquired by Motorola in 2001) and recently named CEO of CompuDyne’s Public Safety & Justice Division said: “I believe this is a pivotal time in the life of this industry. The major players are vying for industry leadership. Private companies with superior technology and a strong customer base will be attractive targets for the industry leaders.”
Capstone believes that the industry consolidation is just beginning. John Ferrara, Capstone’s President and Managing Partner, said, “The SunGard – OSSI transaction has triggered the new wave of consolidation in the industry. We fully expect that valuation multiples will remain firm through 2005. This fevered market environment for PST will provide private companies a tremendous window to tap the M&A capital markets and recognize premium valuations.”
CEOs of private public safety companies agree. Gene Kirby, CEO of Dialogic Communications Corporation, a leading critical communications software company, said, “We’re excited Capstone has initiated coverage on the public safety industry. Capstone has deep industry knowledge within the public safety industry and we believe they will play a pivotal role in its further development.”