Vector Capital LP Login ABOUT TEAM INVESTMENTS SPACS CREDIT NEWS CONTACT US Home Investments RAE Systems BACK TO INVESTMENTS LIST RAE Systems Sector INDUSTRIAL TECHNOLOGY Deal Type PUBLIC COMPANY BUYOUT VIEW WEBSITE RAE Systems develops and manufactures a variety of multi-sensor gas detection monitors and networks to help protect workers, civilians and the environment About Founded in 1991, RAE Systems is a leading provider of advanced chemical and radiation detection devices. RAE’s devices are rapidly deployable connected, intelligent gas detection systems that enable real-time safety and security threat detection. Insight & Approach In late 2010, RAE was struggling as a public company under the shadows of a complex and unprofitable joint venture in China and a self-disclosed FCPA violation that had occurred several years earlier. Vector’s research revealed a strong underlying core gas detection business. We believed that after divesting the non-core Chinese joint venture, RAE would achieve double-digit growth with a market leading product. Furthermore, our outside-in diligence convinced us that the company was well positioned to transform itself from a device manufacturer into a wireless and software-enabled safety solution provider. We also established a partnership with a leading Chinese private equity firm given 25% of revenue and 75% of employees where in China. We also built a close relationship with RAE’s founders and current CEO and CTO, who controlled more than 30% of the company, providing strong allies in the take-private process. The combination of the strategies above gave us an overwhelming advantage in a competitive process, resulting in a take-private transaction that closed in June 2011. Vector Value Add Vector helped the company hire a new COO and a new CFO with significant experience managing global industrial businesses and helped the company execute a sale of its non-core joint venture in China. We also invested heavily in a software strategy to transform RAE from a product company into a recurring safety solution vendor. Results RAE’s core business grew profitably at a double digit rate for several years in a row, and is recognized as a pioneer in the gas detection industry with unrivalled technologies. In 2013, RAE was sold to Honeywell International (NYSE:HON) for $340 million. About Team Investments SPACS Credit News Contact Us LP Login Privacy © 2021 Vector Capital. a FINE site