EV portfolio: Company case study
Company: Halfwave AS
Year of investment: 2012
What attracted EV Private Equity to the company?
EV Private Equity was attracted to Halfwave due to the innovative and partly disruptive nature of its proprietary technology and the fact that the core of the business could be characterized as a platform technology with an opportunity for it to be expanded upon. Halfwave provides accurate and reliable inspection data that allows customers to make informed choices to maintain the integrity of their critical assets. The main focus when EV invested was the unique technology application to inspect high pressure large pipelines transporting oil and gas. But we also saw and had clear ideas on how the superior acoustic inspection technology could be exploited and expanded upon in other market segments.
What was EV’s role?
With the deep PE experience and sector knowledge, EV Private Equity saw the company’s potential, and was willing to take the venture risk to commercialise the technology. The deal was sourced as a proprietary bi- lateral negotiation with the major international certification body DNV GL, and EV took control of the investment from day one by conducting hands on strategic advice, while also becoming a proactive member of the board.
“ Halfwave’s annual revenue has doubled repeatedly over the last three years and will continue a strong growth trajectory beyond 2019..”
EV Private Equity introduced strategic co-investors, Chevron and Shell and brought in growth capital through a co-investment from EV’s largest LP – UTIMCO. Throughout the holding period we have also through our network impacted and assisted in strengthening the management team. Lately, and after the main In Line Inspection business has been getting to a steady commercial growth phase, EV has then initiated the Spinning out of two separate sister companies applying ART for external Subsea inspections and for downhole well applications. Based on the initial company investment, EV will hence now be able to exercise a multiple exit strategy.
The commercialisation of the main In Line Inspection business took longer and costed more than originally planned, but EV has with stamina strongly believed in, and assisted in bringing to the market a truly disruptive pipeline inspection technology for multiple dimensions and both liquid and gas service. This was also pivotal in Halfwave achieving the 018 Offshore Pipeline Technology Award. Halfwave is at present enjoying a solid and diversified international blue chip client base and has a strong back log of both regular on- and offshore pipeline inspection contracts as well as multiple prestigious engineering, procurement, build and inspection projects for some of the world’s most demanding pipeline projects being constructed.Halfwave also benefit from a sponsored and partly soft funded development contract for the next generation In Line Crack Detection tooling for gas service.
Halfwave’s annual revenue has doubled repeatedly over the last three years and will continue a strong growth trajectory beyond 2019. Halfwave turned EBITDA positive in 2018. EV is continuously and in close cooperation with management working to improve the company´s performance and margins while also assisting with introductions to new markets that will increase order back log.