CSL provides technology used for intruder alarm systems through its ‘dual-signalling’ services.

Its technology works by transmitting signals over both a traditional fixed telephone line and a wireless network.

The deal is being led by a team consisting of CSL’s managing director Phil Hollett, and commercial director/co-founder Simon Banks. The buy-out achieves an exit for Octopus Ventures.

Under the terms of the transaction Bowmark Capital has provided £13 million of equity to finance the buy-out, with existing lender Octopus Ventures extending its debt facilities to £10 million.

Hollett says that CSL is now ‘uniquely positioned’ to capitalise on the growth opportunities that exist in the security communications market.

He adds: ‘With Bowmark’s support, we will continue to pursue strong growth in existing and new markets, by applying our UK security industry expertise both overseas and in adjacent sectors.’

Octopus originally partnered with CSL through a management buy-out in 2006 and will now continue to support the business through its new debt facilities.

Jane Vinson, portfolio director with Octopus Ventures, comments: ‘This is a great example of how strong relationships between investors and talented entrepreneurs, and flexible funding structures can really help businesses at various stages of their growth trajectory.’

In 2011, Bowmark realised a four times return on portfolio company Advanced Childcare in a £28 million deal with US firm GI Partners.