Capstone Headwaters advised RedZone Robotics, Inc. (“RedZone” or the “Company”) on its sale to private equity firm Milestone Partners. Terms of the transaction were not disclosed.
RedZone is a technology-enabled solutions business that uses proprietary robots, sensing capabilities, and software tools to provide inspection, data collection, and asset management and decision support services primarily for wastewater pipeline systems. Founded in 1987 in Pittsburgh, Pennsylvania, RedZone’s data-driven solutions help companies avoid expensive infrastructure system failures, resulting in lower capital expenditures and maximized returns on investment. RedZone’s autonomous Solo robots, Profiler and Responder multi-sensor robots, and pipeline asset management software (ICOM), make it a technology leader in the industry. The Company has historically grown at an annual rate of over 20.0% and has strong growth opportunities through further investments in proactive sales efforts and channel development.
Milestone Partners is a private equity firm based in Radner, Pennsylvania. The firm focuses on investments for technology-enabled solutions in the industrial, financial services, and manufacturing sectors. This acquisition represents Milestone Partners’ expansion into industrial technology and smart water sectors.
RedZone is the sixth successful advisory assignment in the Water sector and the third successful advisory assignment in Robotics for Capstone Headwaters’ Industrial Technology Group.
Dan Yingst, CEO of RedZone, stated
“We are grateful for the support of our equity partners over the past several years and are glad we have been able to grow the business and achieve this result. We also believe we have found an excellent new equity partner in Milestone and look forward to working with them to continue our growth.”
John Nowaczyk, Partner at Milestone, said
“We believe RedZone’s suite of technologies is well-suited to help clients understand where the needs are most critical and how best to deploy precious budget dollars. RedZone has also assembled an excellent team and we are eager to support management during the next phase of RedZone’s exciting growth.”
Samrat Karnik, Managing Director and Co-Head of Industrial Technologies at Capstone Headwaters added
“We were very pleased to work with RedZone and its investor group, led by ABS Capital Partners, to find a successful transition to an investor committed to helping the Company realize its full potential. This transaction represents a very successful outcome for a fast-growing company that is uniquely positioned to address the acute challenges facing water (pipeline) infrastructure management and upgrades. We were able to leverage our deep knowledge of robotics, sensing / instrumentation, data analytics and software sectors along with our expertise in water technology to appropriately position the Company and deliver an optimum result for RedZone’s shareholders.”