LeCroy is a developer and manufacturer of signal analyzers, predominantly high-performance digital storage oscilloscopes.
At the time of Advent's investment in 1995, the company was the No. 3 player behind Tektronix and Hewlett-Packard. But it possessed underexploited market potential in a propriety technology that gave its products a competitive advantage in the data storage and telecommunications sectors. To take full advantage of that potential, LeCroy required significant capital to fund an aggressive growth strategy.
Following the investment, we worked closely with the management team to prepare the business to go public, bringing in additional board members with experience relevant to the private-to-public transition. Only six months after our investment, LeCroy floated on Nasdaq (LCRY). Post flotation, the company increased its market share by 50% in its main oscilloscope business, attaining the No. 2 market position ahead of Hewlett-Packard. We remained invested in LeCroy after the IPO, only realizing our investment at the time of a secondary offering two years later.
While no longer a shareholder in the business, we retained close links with the company and in 1999, when LeCroy sought to raise further capital in a tight public market, we reinvested in the company, this time as a PIPE. LeCroy repurchased Advent's shares as part of a wider share buy-back program in September 2003.