Houlihan Lokey Advises INdigital

Houlihan Lokey is pleased to announce that Communications Venture Corporation, Inc. (dba INdigital) has been acquired by Novacap’s inaugural Digital Infrastructure Fund. INdigital provides Next Generation 911 (NG911) services that cover more than 60 million people in over 200 local 911 authorities throughout the United States and Canada. This collaboration promises to accelerate growth and enhance INdigital’s capabilities to innovate advanced solutions in the NG911 space. The transaction closed on July 9, 2024.

Founded in 1995 by nine Indiana local exchange telephone companies, INdigital is a leader in developing NG911 services. Since implementing the first large-scale E911 network in the United States in 2004, INdigital has grown to provide NG911, Text-to-911, and the MEVO service continuity platform. Since implementing the first large-scale IP-based public safety network in the United States in 2004, INdigital has grown to provide NG911 services to more than 60 million people in over 200 local 911 authorities throughout the United States and Canada.

The current management team of Mark Grady, Eric Hartman, and Jeff Humbarger will continue in their roles as Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer, respectively. The founding local exchange companies will continue to be significant shareholders in the company.

“Novacap is proud to partner with INdigital, a leader in the essential field of Next Generation 9-1-1 services, underscoring our commitment to mission-critical technologies that enhance public safety,” said François Laflamme, Senior Partner at Novacap. “Their superior technological solutions and strong market positioning align perfectly with our investment philosophy. Our objective is to drive their expansion and unlock the untapped potential within the NG911 space, leveraging our expertise to deliver enhanced value to our stakeholders and improve emergency response capabilities across North America.”

“Novacap’s deep expertise in digital infrastructure distinguishes them in the market, as evidenced by their strategic investments in industry leaders like Horizon Telecom and Stratus. This collaboration promises to accelerate our growth and enhance our capabilities to innovate advanced solutions in the Next-Gen 911 space. We are excited about the possibilities this partnership opens up for further innovation and our ability to deliver state-of-the-art, lifesaving technologies,” said Mark Grady, Founder and CEO of INdigital.

Founded in 1981, Novacap is a leading North American private equity firm with more than C$8 billion of AUM that has invested in over 100 platform companies and completed more than 150 add-on acquisitions. Applying its sector-focused approach since 2007 in industries, TMT, financial services, and digital infrastructure, Novacap’s deep domain expertise can accelerate company growth and create long-term value. With experienced, dedicated investment and operations teams as well as substantial capital, Novacap has the resources and knowledge that help build world-class businesses. Novacap has offices in Montreal, Toronto, and New York.

Houlihan Lokey served as the exclusive sellside advisor to INdigital and its shareholders on its sale to Novacap and assisted in marketing, structuring, and negotiating the transaction. This deal further solidifies Houlihan Lokey as a market leader in the digital infrastructure space.

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