ipDatatel today announced the closing of its $2.85 million growth capital round, led by Genesis Park, L.P., joined by Tchoupitoulas Partners and existing investors. The company designs, engineers and manufactures innovative Internet-ready HAN (Home Area Network) wireless devices for security, home automation and HVAC (Heating, Ventilation and Air Conditioning) industries. The devices connect existing and new manufacturers’ alarm system controls to the Internet and HAN connections, turning smart phones and wireless-based devices into multi- functional, portable controls.
“The loss of landlines in many homes has made the gateway into the existing broadband connection a choke point for many types of monitoring and control solutions,” said Peter Shaper, Founding Partner of Genesis Park. “Consumers and businesses are looking for an alternative solution, one that does not rely on outdated phone lines and one that adds two- way functionality to existing systems.”
The ipDatatel product suite provides alarm installers, service providers and equipment manufacturers with an enhanced product suite to provide additional capabilities and tools to their customer base. These parties maintain their customers and branding, respecting the existing strong, customer-provider relationship, while ipDatatel delivers the network, technical support and next generation products that keep customers interested in their services.
“ipDatatel has an efficient, propriety approach that is being adopted broadly,” said Russell Vail, Founder and CEO of ipDatatel. “The business model has proven attractive for all parties in the value chain, ultimately giving the end-user more flexibility, control and insight into security and residential and business automation.”
The company has penetrated 80% of the equipment manufacturer market, including Honeywell, DSC and General Electric for the purpose of signal distribution through the Internet and HAN connections. Its devices provide the most affordable wireless alarm communication and auto aware services on the market. In addition, ipDatatel’s equipment integrates with existing equipment avoiding costly replacement of systems already installed.
“We find a lot of value in this management team’s deep experience in security, wireless interface and controls,” said Shaper. “We also like that it is based in the greater Houston area, given the range of energy and industrial players that are continuing to integrate automation capabilities.”
Use of proceeds will support the scale of ipDatatel’s operations as it further penetrates the security installation and OEM (Original Equipment Manufacturer) market. “Our decision to raise additional equity came down to the strategic value of our investors,” continued Vail. “We’ve found Genesis Park goes beyond providing capital, and is a true partner and mentor for its clients. We are confident they will add a lot of value going forward.”