Riverside to sell Netwatch stake after seven-year hold

Private equity firm The Riverside Company has agreed to sell its stake in Netwatch, an international remote security monitoring provider, after a seven-year investment period.

The firm's affiliated European fund has signed a definitive agreement with an undisclosed buyer. The deal is expected to close in the first quarter of 2026, subject to regulatory and other customary approvals.

Netwatch operates in remote security monitoring and intervention. The company uses artificial intelligence in its video-based systems and serves customers in sectors including automotive, retail, banking, manufacturing, construction and infrastructure.

The company now monitors more than 330,000 sites worldwide. It provides services that focus on proactive video surveillance and live intervention through remote monitoring centres.

Growth under Riverside

Riverside first invested in Netwatch in 2018 through its European fund. The firm positioned the business within its Safety, Security, Compliance and Risk Mitigation portfolio.

Netwatch has expanded geographically and by sector during Riverside's ownership. The company has added new use cases for its technology and has increased its mix of enterprise customers.

Since 2021, Netwatch has been led by Chief Executive Kurt Takahashi. He has a background in the security industry and has focused the group on larger accounts and new routes to market.

Takahashi has pursued an enterprise-focused sales strategy. He has broadened Netwatch's coverage of vertical markets and extended its network of dealer partnerships.

Nandor Hajdu, Principal of Riverside Europe, led the exit process for the firm. He said demand for technology-led remote monitoring has risen in recent years.

"Netwatch is a pioneer in proactive video monitoring and remote security intervention services, demand for which has surged in recent years as customers increasingly seek to augment conventional security solutions. Netwatch's services are mission-critical, providing peace of mind to businesses and individuals worldwide by delivering a differentiated, technology-driven proactive approach to site protection, risk mitigation, and workplace safety."

"The combination of an experienced management team, a proprietary technology platform, and an unwavering focus on customer service has created a strong foundation for the company's continued development," said Nandor Hajdu, Principal, Riverside Europe, The Riverside Company.

International expansion

Netwatch has pursued both organic growth and acquisitions under Riverside's ownership. The group increased its presence in North America and other international markets during this period.

The company has invested in its technology platform and has broadened its service portfolio. It has also built a multi-channel go-to-market structure, which includes direct sales and dealer partners.

Martin Scott, Chairman of the Board at Netwatch, said he had seen the company extend its technology and geographic reach.

"It has been a pleasure to be part of the Netwatch journey over the past several years. I feel privileged to have supported the company in enhancing its technology platform and service proposition, and in successfully expanding into the North American and international markets, both organically and through M&A," said Scott.

Riverside Europe's Managing Partner, Karsten Langer, said Netwatch fits within the firm's thematic focus on safety and risk management businesses.

"With its proprietary technology platform, multi-channel go-to-market approach, and growing international customer base, Netwatch is a differentiated asset within the security services industry. Our partnership with Netwatch is another success story in Riverside's Safety, Security, Compliance, and Risk Mitigation (SSCRM) portfolio, demonstrating our ability to support founder-led regional champions in their transformation into international market leaders," said Langer.

Deal team and advisers

Riverside assembled a cross-functional team from its European arm for the sale. Hajdu and Scott worked with Senior Associate Sebastiaan Pauwels, Operating Partner Philip Rowland and Operating Partner Doug Milner.

Investment bank Raymond James acted as exclusive financial adviser to Riverside and Netwatch. Law firms Jones Day and Matheson served as legal counsel on the transaction.

Riverside continues to invest globally at the smaller end of the mid-market through its private equity and flexible capital funds. The firm has completed more than 1,110 investments since its founding and holds over 140 active portfolio companies.

Netwatch intends to continue expanding its remote monitoring services and international footprint following completion of the sale. The transaction remains subject to closing conditions and regulatory clearance in the jurisdictions where the group operates.