Posted on 16th June 2022
London, 16 June 2022 --Volpi Capital LLP (“Volpi”) announces that it has partnered with 3i Group plc (“3i”) to accelerate the growth of its portfolio company Digital Barriers, a leading global provider of video compression technology for surveillance and security markets. The ambitious management product and channel growth plan is jointly underwritten by 3i and Volpi, as referenced by Volpi reinvesting considerably and maintaining a significant minority stake in the business.
Headquartered in London, Digital Barriers boasts a strong portfolio of IP and technologies which centres around optimisation of video streaming and edge-based analytics in bandwidth-constrained environments. Key use cases involve live streaming for body cameras, wireless safe city programmes and connected vehicles.
Digital Barriers has been the long-standing trusted reference for leading intelligence and defence agencies and technology leaders in law enforcement and will continue to serve this market. Incrementally, the business has transformed and added to its strategy under Volpi’s ownership on a number of dimensions:
• Shifted the bandwidth optimisation proposition from an effectiveness in defense context to an efficiency in commercial applications context, opening up the large and fast-growing Internet of Video Things surveillance and security market
• Invested in the development and launch of a cloud-native, hardware-agnostic Video Surveillance as a service (VSaaS) solution
• Introduced revenue recurrence and scale by leveraging commercial capabilities through the set-up of an indirect channel partner network with actors such as AT&T, Vodafone, Fujitsu, and AWS
• Increased margins on the core offering by pivoting from custom requests to a repeatable delivery model
Against the backdrop of wanting to accelerate on and substantially invest into this strategic direction, Volpi set out to bring on board a knowledgeable partner which was found in 3i. The deep sector knowledge they had already acquired helped build their conviction in the opportunity fast, corroborating Volpi’s investment thesis along the way. Both partners share the conviction that Digital Barriers offers a unique and differentiated product which solves an increasingly acute need in an attractive market and look forward to collaborating over the coming years.
Subject to customary approvals the transaction is expected to complete by Q3 2022.
About Volpi Capital
Volpi Capital is a specialist European lower mid-market private equity firm seeking ambitious businesses that use technology to disrupt traditional B2B value chains. Volpi typically invests €25-75 million of equity in businesses with enterprise values between €50 million and €200 million and seeks to drive transformative growth through international expansion and consolidation. The firm, which was founded in 2016 by Crevan O’Grady and Marco Sodi, closed its second fund (Volpi Capital Fund II) in December 2020 with €323 million of commitments
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