The announcement was not unexpected since Bosch had already made public its intention to divest part of its Bosch Building Technologies systems business. The proposed transaction is also the second transaction with Triton Partners, following the acquisition of Aventics (formerly known as the pneumatics division of Bosch Rexroth) in December 2013.
With the move, Bosch completes the sale of its business units focused on Communications, Security and Safety Systems, which includes a large portfolio of video surveillance, access control, and intrusion solutions. This part of Bosch’s business encompasses the areas of professional communication, with systems from Electro-Voice, Dynacord, RTS Intercom Systems and Telex, all highly recognized globally in the professional audio, broadcast and installation sectors.
Telex, the original Minnesota-based company merged with Electro-Voice in 1998, and was later sold to the Bosch Group in August 2006 in a $420 million deal with Telex Communications, which then included Electro-Voice, Midas, Klark Teknik, Telex, RTS, and Dynacord brands. The resulting Bosch Communications Systems merged the Telex broadcast intercom business with RTS, and kept the Radio Dispatch, Aviation Solutions, Paging Microphones, and Wireless product segments, which are still thriving.
From the sources consulted by audioXpress, there is an optimistic sense that Triton intends to help Bosch security and communications technology continue its growth trajectory and drive innovations as a standalone company. The undisclosed transaction is largely expected to receive regulatory approval and be closed by the end of the first half of 2025.
A private equity firm with a history of investments in the security sector, Triton Partners says it invests primarily in medium-sized businesses across Europe. Triton also has many years of experience in carving out businesses from large German companies, such as Bosch, Siemens, Volkswagen, and others. Almost half of all Mid-Market investments made since Triton’s inception over 25 years ago have been carve-outs.
Triton also announced plans to maintain the company’s operational headquarters in Germany. The acquired business of Bosch Security and Communications Systems (BSCT) represents a global workforce of approximately 4,300 employees, spread across multiple global locations, including owned factories in Europe, the Americas, and Asia. The company also provides successful contract manufacturing services for other businesses. In the 2023 fiscal year, approximately 4,300 employees generated revenues of more than 1 billion euros.
“We are pleased to have reached an agreement with Bosch and to be the preferred buyer for BSCT. We want to support the management and employees to continue the strong growth trajectory that BSCT recently saw by providing not only capital, but also our know-how from having owned and successfully developed other companies in the security space,” says Claus von Hermann, Managing Partner and Co-lead of the Industrial Tech team at Triton.
Christian Fischer, deputy chairman of the board of management of Robert Bosch GmbH, with responsibility for the Bosch Group portfolio management, explains about the planned transaction: “It was our aim to find a suitable buyer who will acquire all three security and communications technology business units and offer their associates an outlook for the future. We have achieved that aim. Triton has presented a sustainable and credible growth strategy for the business. As an investor, moreover, it can provide a high level of industrial expertise and many years of experience in taking comparable companies forward.”
Peter Loeffler, the CEO of Bosch Building Technologies’ product business, adds: “With Triton as our new owner, its expertise and support we will have a strong base for further, profitable growth. We will work together to push ahead with innovations in the security and communications area – to the usual high-quality standards and with comprehensive expertise. The entire team is looking forward to making our new company a success and will remain a reliable partner for our customers.”
“BSCT is at the core of our investment strategy to further develop market leading companies while Security and Professional Audio are focus areas within Triton’s Building Technology sector strategy. We do see significant market growth in the years ahead and believe BSCT is well positioned to capitalize on this. Our goal is to invest in the company’s brands, technology, sales force, and go-to-market strategies,” adds Sachin Jivanji, Investment Advisory Professional at Triton.
Bosch core operating areas are now concentrated in the mobility (Bosch is the largest automotive supplier of hardware and software), consumer goods (including household appliances and power tools), and industrial technology (including drive and control) markets. In July 2024, Bosch announced the acquisition of Johnson Controls’ heating and air conditioning operations for $8 billion.
www.triton-partners.com
www.electrovoice.com
www.dynacord.com
www.rtsintercoms.com
www.telex.com
Bosch Security & Safety Systems
