O2 Invests in Flip Electronics, LLC
January 2021
Bloomfield Hills, MI
O2 Investment Partners (www.o2investment.com) announced today that it has made a significant investment in Flip Electronics (www.flipelectronics.com), partnering with CEO Jason Murphy and his management team to support the company’s rapid growth. Terms of the investment were not disclosed.
Jason Murphy, CEO of Flip, commented, “We have seen significant growth over the last several years by establishing strategic, authorized relationships with our original component manufacturer partners. Our demand analytics and unique go-to-market model allow us to match customer requirements to end-of-life (“EOL”) and slow-moving inventory, creating more value from parts that typically do not get good market exposure in existing sales channels. Our unique access to 100% factory authorized traceable parts helps our customers avoid counterfeit risk and costly product redesigns. We are thrilled to partner with O2 to help us facilitate our next stage of growth. We have built a unique and robust platform and would like to continue our aggressive expansion, and we believe O2 is the perfect partner to help us achieve our goals.”
Founded by Jason Murphy in 2015, Flip Electronics is an authorized specialty distributor of electronic components to customers across the U.S. and internationally. Flip serves as a critical supply chain partner to both electronic component manufacturers and end customers across a range of industries, including military, aerospace, telecommunications, healthcare, and industrial. The Company helps solve complex challenges caused by component obsolescence through its core focus on EOL, obsolete, and hard-to-find parts. Flip is headquartered in Roswell, GA.
Joe Vallee, Vice President at O2, commented, “We feel very lucky for the opportunity to partner with Jason and the Flip Electronics team. Flip’s value proposition to both original component manufacturers and customers has helped the company establish a strong position in its industry, and we believe there is significant opportunity for continued growth. Our goal is to support management’s vision and help the team as they work through strategic decisions and growth planning.” Mr. Vallee added, “We also want to thank our financial partners PNC Business Credit and Capital Southwest Corporation for their confidence and participation in this investment and Citizens M&A Advisory for running an efficient sale process.”
Flip Electronics, LLC is the third platform investment for O2’s most recent fund, O2 Investment Partners Fund III.
About Flip Electronics:
Flip Electronics is an authorized specialty distributor of electronic components to customers across the U.S. and internationally, focused on EOL, obsolete, and hard-to-find parts through its authorized relationships with its original component manufacturer partners. Flip is headquartered in Roswell, GA.
About O2 Investment Partners:
O2 Investment Partners is a Midwestern based private equity firm that seeks to acquire majority interests in lower middle market B2B services, technology, and select niche industrial companies. The firm invests in businesses with earnings growth potential and a clear path to the creation of shareholder value. O2 invests with a view toward partnering with management to build and grow the business and take it to its next stage of development. This requires not only a clear vision and strategic plan to create shareholder value, but a close partnership and alignment of interest with management.
Additional information is available at www.o2investment.com ; www.flipelectronics.com