“Vector has been a great partner for Tidel and its management team. They have provided us with capital necessary for dramatic growth and hiring, while also contributing their strategic advice and sophisticated metrics-driven management. We have developed solid partnership dynamics that are allowing us to leverage Vector’s expertise effectively and to take the business to the next level”
Leading provider of cash management solutions to specialty retailers worldwide
Tidel designs, develops, and markets cash management systems to specialty retailers worldwide. Founded in 1978, the company has deployed over 300,000 units and is currently the #1 player in the space. Tidel’s equipment integrates with retailers’ point of sale and accounting systems, as well as with banking partners’ and armored cars’ software. The company’s products are revolutionizing traditional cash management by providing a fully automated solution to retailers and by reducing the frequency, risks, and costs of manual cash delivery and handling. Tidel’s “smart safes” also meaningfully improve corporate retailer liquidity by enabling access to instant and provisional credit to cash in the store. The company’s other products include traditional safes and robbery prevention devices.
Insight & Approach
Vector proactively identified Tidel as the clear technology and market leader in a sector with an enormous addressable market and minimal penetration. At the time, the company lacked access to capital and was locked in an inefficient shareholding structure. In 2011, Vector partnered with Tidel’s management team to execute a recapitalization. Since then, Vector has provided significant capital combined with technology and operational expertise and an equity incentive package, re-energizing the business and allowing Tidel to capitalize on vast growth opportunities in the market.
Vector Value Add
Vector has worked closely with Tidel’s management team to develop and execute a long-term strategic growth plan and provided corresponding capital to satisfy investment needs. In addition, Vector partnered with management on a number of large-scale initiatives: recruiting top-class talent to the organization and to the board of directors, re-building the sales team, investing in new product development and driving operational improvements across supply chain and the cash cycle.
Tidel grew significantly under Vector’s ownership, while maintaining its #1 position in the technology-enabled cash management solutions market. In February of 2015, Vector sold Tidel to Graham Partners.