Banking solutions company Cennox has bought the European business of 3SI Security Systems (“3SI”), a global leader in asset protection and GPS tracking technology. The acquisition follows Cennox’s purchase of Diebold UK & Ireland in June – a leading ATM maker – after receiving an additional investment from BGF.
The two acquisitions will allow Cennox to add further scale to its ATM manufacturing capacity as the business continues to focus on providing a complete ATM service, as well as adding a new range of security products through 3SI. This builds on Cennox’s current capabilities which include construction, maintenance, refurbishment and security services.
These are Cennox’s fourth and fifth acquisitions in the past three years. The business bought US based ATM services and alarm business Sterling in December 2013 and PSSI, a California-based ATM cleaning and services business, in April 2015. It counts major banking groups around the world as long-standing customers.
Cennox’s growth strategy has been supported by BGF since 2012 following an initial investment to kick-start an expansion strategy.
The introduction of comprehensive sales strategies for both Sterling and PSSI in addition to organic growth have led to impressive growth figures. Since BGF’s investment, Cennox has more than doubled its revenue from £15m to close to £40m (excluding the two latest acquisitions). Cennox will continue to explore further acquisition opportunities in the ATM sector and drive overseas expansion.
Launched by former Travelex director Clive Nation in 2006, Cennox currently employs 650 people across operations in 14 countries, including specialist ATM engineers, constructors, installers, cleaners and salespeople.
In 2016 the company’s rapid growth was recognised in The Sunday Times Virgin Fast Track 100 awards – a list of Britain’s 100 fastest growing private companies – as it won the Best Management Team Award. Cennox also ranked 59th in the 2015 The Sunday Times Virgin Fast Track 100 list.
Clive Nation, founder and CEO of Cennox explained: “Both the European business of 3SI Security Systems and that of Diebold UK & Ireland, have built fantastic reputations and long-standing relationships with their customers. They both have first-class teams of employees whose expertise will add real value to our existing offering.
“Cennox has been experiencing fantastic year-on-year growth and we have benefited from the support and financial backing from BGF. It has enabled us to accelerate our growth strategy without compromising on the quality of our operations and service.”
BGF Investor Alistair Brew added: “Clive and his team continue to possess the drive and ambition we saw when we first invested in Cennox in 2012. This, together with a carefully thought through and well-executed growth strategy has led to impressive results. We’re delighted to be continuing to support their aspirations with funding through BGF.”