THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
Based in Western Australia, iZone operates as a developer, contract manufacturer, and distributor of proprietary smart home air-conditioning and home automation systems. Positioned as a high-quality mid-tier option, its innovative product range enables homeowners to control and automate various aspects of their households, starting with air-conditioning and extending to lighting, security, irrigation, garage doors, power monitoring, and more. Designed as an easy-to-install modular solution, iZone’s smart home platform stands out for the superior level of control it offers, the user-friendliness of its interfaces, and the ongoing integration of leading-edge smart technologies, e.g. compatibility with Google Home and Amazon Alexa. The Business sells its products nationally as well as in NZ and South Africa via a network of resellers, predominantly HVAC contractors, for whom the brand creates a key point of differentiation.
In late 2022, having developed and commercialised their proprietary range of smart home solutions, iZone’s directors sought a strategic or financial acquirer with the resources and capabilities required to lead the Business through its next phases of growth and expansion. They engaged Johnsons to undertake an international sales campaign on their behalf.
The International Sales Strategy
As a highly profitable technology business – with uniquely engineered products, a strong in-house R&D team, and a well-recognised brand – this represented an attractive acquisition opportunity for prospective buyers. The proposition was further strengthened by iZone’s existing compatibility with 20 different A/C appliance brands (including the market leaders) and by its established reseller channel to market.
Johnsons Corporate’s custom research & marketing targeted the Australian and selected overseas markets, with a focus on other developers / vendors of smart home technologies. In addition, Johnsons commissioned secondary research into adjacent sectors, including vendors of building and industrial automation products, HVAC equipment, and electrical equipment in addition to financial investors with a specific focus on the mid-market and/or smart technology. Johnsons’ proactive direct marketing campaign uncovered a wide range of interested parties from across the different research segments. It elicited 35 expressions of interest. Further vetting and negotiations resulted in the selection of a preferred buyer, with Offer and Acceptance secured within 12 weeks of going to market.
(Read more about how using a Specialised Mid-Market Business Broker Approach to selling your business could get you a better outcome – just like our client).
The Multinational Acquirer
Operating for over 50 years, Rinnai Australia is a subsidiary of global equipment brand Rinnai Japan Corporation. Already a leader in the provision of hot water and HVAC appliances, this acquisition served to extend Rinnai’s product range, with complementary smart technologies that would help create seamless climate solutions for Australian homeowners.