Headquarter: Sweden

Revenue: +SEK 1,000m

Investment Date: September 2019

Business overview

AddSecure is a leading provider of commercial alarm signal transmission monitoring and secure M2M connectivity and communications solutions across multiple verticals.

AddSecure has its origins in the fire alarm industry in Sweden and Norway. Communication between fire alarm sensors / panels and monitoring centres / fire brigades has historically been highly regulated (both by municipalities and insurance companies), creating a need for specialist providers like AddSecure. The firm has consolidated its local markets and became a strong market leader in the Nordic countries. Its core activity is the provision of high reliability alarm transmission monitoring.

The company has since been growing through M&A in verticals where mobile connectivity plays an important role – Telematics, Smart Rescue (tailored security and safety solutions to the public sector) and Electricity Grid Monitoring.

Vehco, its telematics subsidiary, is one of the leading fleet management solutions providers in Europe with a focus on heavy commercial vehicles.

>100k connected security units

>100k connected trucks

Fast growing exposure to various mission critical IoT communication verticals

Deal description

Castik Funds partnered with key members of the management team and the previous owners of AddSecure to support the firm in its next phase of growth.

Management and Castik will continue to pursue an active consolidation strategy to enhance AddSecure’s position as a leading provider of alarms and telematics services in Europe as well as to further grow in other selected IoT and M2M communication service verticals.

Investment highlights
  • Recession resilient business
  • Trend towards and increasing importance of M2M communications in all industries
  • Fragmented M2M and IoT communication market with room for consolidation
  • Market leading position of the alarms business in the Nordics
  • Stable market dynamics in alarms supported by regulatory requirements
  • High share of recurring revenue and revenue visibility
  • High customer stickiness due to critical nature of the service offering, contracted revenues and high switching costs
  • Strong underlying organic growth in the European telematics market