Anti-counterfeiting firm OpSec will become a publicly listed company via a deal with a special purpose acquisition company owned by Bahrain investor Investcorp.
The deal, which creates a combined company valued at £333m ($426m), is expected to close in the second half of this year and proceeds will fund product development and potential acquisitions. It follows a move by OpSec, which employs 150 people at its base in Washington, Sunderland, to buy Copenhagen-based intellectual property protection firm Zacco earlier this year.
Dr Selva Selvaratnam, CEO of OpSec Group, said the move would help OpSec further tackle the estimated $2.8trn counterfeiting and piracy market. He said: "The threat posed by the imitators, content pirates, and fraudsters is profound, and looks set to increase further given continued growth in e-commerce, online content, and social media.
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"Creating, nurturing, and protecting intellectual property and brand identities in this environment has unquestionably become one of the defining priorities for leading enterprises. We are thrilled to partner with Investcorp Europe to expand our presence in this arena and take advantage of the growth opportunity ahead."
Baroness Ruby McGregor-Smith, CEO of Investcorp Europe, said: "All of us at Investcorp Europe are incredibly excited to be partnering with OpSec Group on this transaction. Selva and the impressive OpSec Group leadership team have deep expertise across all aspects of IP and brand optimization, monetization and protection. They have built a solid offering that safeguards some of the world’s most iconic brands, and I believe that OpSec Group is very well positioned to deliver long-term value for all stakeholders."
Hazem Ben-Gacem, chairman of Investcorp Europe and also a co-CEO at Investcorp Holdings, added: "We believe the OpSec Group represents a great opportunity to invest in a truly global, category defining leader in the brand protection and enhancement fields, and that the structure of this transaction will position this business to have the opportunity to execute on an even broader scale."
OpSec provides services major brands in a range of sectors including media and clothing, as well as Government customers in Europe, Africa, the Middle East and the Far East. The group employs about 1,300 people worldwide, including materials scientists, optical engineers and IP investigators among other roles.
Most recent accounts for the group's Washington operation show revenue of £16m and operating profits of £373,000 in the year to end of March 2022. Within those accounts, the firm pointed to Government security sector contract wins in Q4 of that year, which it said was likely to boost performance.
