Jan. 5, 2010 -- Access control products and solutions company Sielox LLC announced this morning that it has been newly acquired through what it called a management buyout that had additional funding provided by private investors. The acquisition closed on Friday, Dec. 31, 2010, and was worth approximately $2.55 million. As part of the purchase, Sielox LLC assumed liabilities of approximately $113,000 and committed to purchasing $5 million in Costar video products over three years.
The move makes Sielox a private company which will be led by Karen Evans, who has served as the president and general manager of Sielox LLC since Checkpoint sold the company in 2006. Evans has 17 years with Sielox, having started as a regional sales manager for Checkpoint in 1991 and eventually becoming the national sales manager, before transitioning to the executive role in 2006.
Following the split from Checkpoint, Sielox LLC was owned by Sielox Inc., which also owned Costar Video Products. James Pritchett served as president of the parent company Sielox Inc., which owned both Sielox LLC (the access control company) and Costar (the video surveillance arm of the company).
As part of the acquisition, Sielox LLC is purchasing the rights to its own name but also to the name Sielox Inc., and Evans said she expected that prior parent company Sielox Inc. will see a name changed within 45 days. Sielox said it will continue to maintain its relationship with Costar and will still offer the Costar Video Products through its channel as part of the acquisition agreement.
According to a statement from the company, the new investors are "established security technology investors," and include Richard Hoel, a Minnesota lawyer-turned-business investor.
Evans said, "This investment in Sielox LLC is a validation of the quality, sustainability and marketability of the solutions we have developed over the years. Becoming a private entity will allow us to allocate more funds into product development and fast track them for delivery to our business partner channel. We are committed to building our sales and business partner channel to ensure our continued success."
Evans added that the new investment not only allowed for funds to acquire the company, but also provided financial backing for expanding product lines and for expanding the Sielox sales team. She said also that the entire Sielox team is remaining in place following the acquisition.
"We thought this was a better move for the company moving forward," Evans said. "We want to get new products out on the street. We want to grow our sales force; we've been very lean."
New products are indeed coming for the company. The last major product launch for Sielox was a year-and-a-half ago she said, with the AC-1700 access controller. However, right on the heels of this acquisition, Sielox is coming out with an updated version of Sielox's flagship "Pinnacle" access control software. Evans said that new software version will be announced within the week and added that additional hardware product launches are planned for the future.