L-3 Security and Detection Systems

Potomac Key Group was retained in 2010 by the leading provider of check point, checked baggage and cargo inspection systems to TSA to assist Division management in expanding into non-TSA international and U.S. public sector markets.  Our engagement encompassed a review of the existing sales and marketing approach including direct sales, distributors and sales pipeline.  We recommended to management that aggressive development of sales channels in the U.S. public sector market was required with selective investment and partnerships in Latin America.  Potomac defined vertical markets in the security space and provided introductions to channel partners with the ability to distribute L-3 products in high demand markets.

Jenoptik AG Traffic Solutions

Under contract to Jenoptik AG in Monheim, Germany, Potomac Key Group Managing Director, Stuart Mackiernan served as CEO from 2008 to 2010. Jenoptik is the world leader in providing traffic monitoring equipment to governments, police departments and traffic enforcement service providers. Since, 2000 Jenoptik had operated a subsidiary services business in the US as a distribution channel for their products.  This operation, based in the Baltimore, MD area operated nationally in the US but had never reached the scale required to compete effectively in the traffic enforcement services market in the US. The purpose of the engagement was to evaluate the business, market, technologies and competition and to make recommendations for strategic alternatives for the business.  The approach was to bring in engineering and operations expertise in the traffic enforcement services industry and to do a complete evaluation of the operation and potential for growth. Significant improvements we made in the operation of the business which became profitable within the first year.  We recommended to Jenoptik to make a major acquisition to increase scale and positively impact profitability or alternatively to divest the business to one of the two large companies driving a consolidation of the industry.  Jenoptik decided to sell the business and we brought in a strategic buyer and negotiated the sale.

CompuDyne Corporation

In 2007, we learned from the management of CompuDyne Corporation, a publicly traded company engaged in providing solutions for homeland security and public safety that their largest shareholders were interested in a liquidity event. In cooperation with CompuDyne management, Potomac Key Group took the lead in taking the company private in a transaction which allowed the shareholders and management to achieve the liquidity they desired.  Under formal agreement with CompuDyne, Potomac Key Group  retained FBR Capital Markets to assist in identifying Private Equity investors to acquire the company. A total of 17 Private Equity firms signed Non-Disclosure and Stand Still Agreements and received copies of the Confidential Information Memorandum prepared jointly by Potomac Key Group and FBR.  Potomac Key Group Managing Partner Stuart Mackiernan led a “road show” to visit with 10 Private Equity firms who were interested in the transaction.  The Gores Group of Los Angeles was selected by Potomac Key Group and we then teamed with Gores to make the successful offer and complete the transaction with an enterprise value of $110 million.  Following the close of the transaction, Mr. Mackiernan assumed the role of CEO of the new private CompuDyne Corporation.

Shared Spectrum, Inc.

Potomac Key Group was retained by Shared Spectrum, Inc. of Vienna, VA in 2006 to provide advice to the company’s founder and senior management on a strategy to commercialize technology developed under contract to the Defense Advanced Research Projects Agency (DARPA).  Shared Spectrum had proprietary technology for advanced software defined radio systems which resulted from their work in anti jamming technologies for the US Military.  With the explosive growth in commercial wireless communication and the resulting saturation of existing available radio spectrum in the US and worldwide, there is a significant demand for Shared Spectrum’s product.

Potomac Key Group identified markets, channel partners, pricing and licensing strategies for Shared Spectrum enabling the company to make a transition from a small defense contractor to a recognized provider or commercial wireless technology.