allied Worldwide Divests Majority Stake in AMAG technology to Shore Rock Partners
A strategic move aims to accelerate growth and innovation for the high-security access control leader.
Allied Universal, a prominent provider of security and facility services, announced today the sale of a majority stake in its subsidiary, AMAG Technology, to Shore Rock Partners, a growth investor specializing in critical infrastructure. The transaction positions AMAG, a global leader in integrated high-security access control, identity, guest, and video management solutions, for accelerated growth and enhanced product development.
Allied Universal will maintain a ample minority interest in AMAG following the deal. A key outcome of the transaction is the appointment of AMAG President David sullivan as the company’s new CEO. Financial details of the sale were not disclosed.
According to a company release, the decision to separate AMAG from Allied Universal’s services-based business model was driven by a desire to provide the technology firm with greater autonomy and adaptability. “AMAG has been an notable part of the Allied Universal team and we look forward to supporting this next stage of growth alongside our partners,” stated a senior official at Allied Universal. “Because the company is an embedded software and hardware platform, we determined it would be best for AMAG’s long-term growth to separate from our services-based business model, giving it more autonomy and flexibility to focus on development of its products and offerings. Our ongoing investment is representative of our continued support for the business and customers.”
Shore rock Partners, backed by strategic support from BellTower Partners, intends to invest in AMAG’s product portfolio, refine its service models, and broaden its capabilities in safeguarding people, identities, and assets globally. The partnership ensures continuity for AMAG’s existing customer base, integrators, and partners, with day-to-day operations, support resources, and customer-facing teams remaining unchanged.
“We are excited to partner with Allied Universal as we both invest to support AMAG’s next phase of growth,” said ashton Wackym and sebastian levy, co-founders of Shore Rock partners. “AMAG has earned the trust of customers in some of the most demanding environments, and we look forward to building on this heritage by investing resources to deepen customer and channel relationships while advancing the product roadmap. We respect the leadership David and others have brought to the organization and believe AMAG is exceptionally well positioned in an attractive market.”
David Sullivan,now CEO of AMAG Technology,echoed this sentiment,stating,”This partnership marks an important milestone for AMAG and the customers who rely on our technology every day. Shore Rock brings a thoughtful, long-term approach that aligns with our commitment to reliability, innovation and service. Thier investment will help us continue strengthening our platform and delivering solutions that meet the evolving needs of high-security environments.”
The acquisition is further bolstered by a strategic alliance with BellTower Partners,a private investment firm founded by Kewsong Lee. BellTower will provide strategic, operational, and firm-building support to Shore Rock and its affiliates. “belltower has deep confidence in Shore Rock’s capabilities, judgment and approach to long-term value creation,” lee said. “We look forward to working together to realize AMAG’s tremendous potential.”
Notably, the private capital raised to finance the acquisition was oversubscribed, indicating strong investor confidence in AMAG’s future prospects. Legal counsel for Shore Rock Partners was provided by Gibson, Dunn & Crutcher and McGuireWoods, while Allied Universal was advised by Sheppard, Mullin, Richter & Hampton, and BellTower by McDermott Will & Schulte. The transaction was negotiated directly between the parties.
This strategic realignment underscores the growing importance of specialized security technology in a rapidly evolving threat landscape, and positions AMAG Technology for continued success under its new ownership structure.
