News
Fort Dearborn Advisors Represents RMS Technology Solutions, Inc. in Recapitalization with Generation 3 Capital and WF Security Fund, L.P.
Chicago, Illinois - May 15, 2008
RMS Technology Solutions, Inc. ("RMS" or "Company") announced today that Generation 3 Capital and WF Security Fund have led a recapitalization of RMS, a leader in internet protocol-based video surveillance systems. RMS' systems are used by municipalities for law enforcement and other institutions, such as schools, where public safety is a concern. Rick Rubenstein and Paul Zucker, co-founders of RMS and President and Vice President, respectively, will retain a significant equity stake in the Company and remain in their current positions. Fort Dearborn Advisors was the exclusive financial advisor to the owners of RMS on this transaction. Terms of the transaction were not disclosed.
"Working with our new partners will enable RMS to accelerate its growth and enhance our strong commitment to providing our customers outstanding service," said Mr. Rubenstein. He added, "The leaders of Generation 3 and WF Security Fund have a track record of building excellent, well-respected businesses. We are confident that their experience, combined with RMS' abilities and reputation, will solidify our position in the market and enable us to continue to serve demanding customers."
"We have long been a technology leader and having this new partnership will enable us to further extend our capabilities. Technology is playing an increasingly important role in law enforcement and public safety and we intend to stay at the forefront of the trends," said Mr. Zucker.
Jim Coleman, Managing Director and founder of Generation 3 added, "Rick and Paul have built an excellent business over the past 30 years. We look forward to working with them to extend their presence nationally and into areas where their capabilities will give them a competitive advantage."
The market for IP-based video surveillance technology is expanding about 15% per year and RMS' main market - wireless IP surveillance - is expanding at an even faster rate, according to many industry sources.
John Waller, a Senior Vice President at Fort Dearborn Advisors stated "We were fortunate to have an opportunity to work with RMS on this transaction and we are confident that RMS will do very well with their new investor-partners. Rick and Paul clearly choose to work with a high-quality group of private equity firms and in the long run this will prove beneficial as they continue growing RMS."
"Fort Dearborn was a valuable partner for us on this transaction. Their transaction experience and knowledge of our industry and the technological trends impacting the industry clearly enabled them to position RMS in a manner that resulted in an excellent transaction for us," concluded Mr. Rubenstein.
About Fort Dearborn Advisors LLC
Fort Dearborn Advisors provides mergers and acquisitions advisory, debt and equity placements and financial restructuring services to companies with enterprise values above $10 million. Fort Dearborn has a wealth of experience and dedicated transaction groups in select industries including Automotive & Transportation Equipment, Business Services, Consumer Products & Retail, Food Processing & Distribution, Distribution, Industrial Growth, Metal Processing and Packaging & Printing.
Fort Dearborn's clients include many leading privately held companies, private equity firms and public corporations.
About RMS Technology Solutions
RMS Technology Solutions designs, installs, manages and helps maintain complete surveillance systems including camera units, wireless and wired transmission technologies, and video management software as well as other sensor technologies such as gunshot detection and license plate recognition systems. RMS integrates these systems with internet protocol-based networks, resulting in state-of-the-art surveillance capabilities. RMS' systems are used in a variety of areas including police departments where they are designed to disrupt drug and gang-related activities, which in turn helps to reduce associated violent crime. The systems are also used in other areas, such as schools and other public venues, where security is a concern.
About Generation 3
Generation 3 is a private equity firm based in Northfield, Illinois. The principals of Generation 3 have a long history of investing in and profitably growing companies. With capital provided by both the firm's founders and outside investors, Generation 3 works closely with the companies in which it invests to improve operations and identify new market opportunities.
