Thursday 18th November 2021 at 4pm GMT
Hilco Streambank (“Hilco”) is seeking offers to acquire the intellectual property and business assets of Radio Physics Solutions Limited (in Administration) (“RPS” or the “Company”) on behalf of the Joint Administrators of the Company, Richard Tonks of BK Plus Limited and Nicola Meadows of Dains Business Recovery Limited.
Driven by the recent surge in acts of terrorism across the globe, the ability to detect threats in open, unstructured crowd scenarios is paramount in avoiding mass casualties. Founded in 2008, RPS developed and manufactured an advanced and innovative threat detection solution, known as Optracon, which allows threats to be identified without walk-through devices, such as portals and airport scanners.
Optracon is the product of several years of research and development and c. £13.4m in investment and operates in real-time using harmless millimetre-wave signals. The system uses sensors (“OM30”) installed around the perimeter of events similar to CCTV cameras, which can then detect threats at distances of up to 30 metres in open spaces. Optracon defines the depth resolution of a target to make a threat assessment, irrespective of the material that the object is constructed of or contains. A single sensor can automatically scan up to 3,600 people per hour, and identified threats, such as a concealed firearm, are highlighted, and security notified. OM30 sensors combined with the Optracon management control software and targeting cameras provide simple, effective, and accurate security screening of remote threats, suitable for multiple internal or external applications, including but not limited to transport hubs, educational institutions, places of worship, and sports stadiums.
In 2020, with the support of the European Commission and funding from a Horizon 2020 SME instrument grant, Optracon completed final trials held at a sports stadium in Warsaw, Poland, and after exceeding initial expectations, hit the market. Today, the Company has numerous deployments globally. Prior to Administration, the Company had a significant pipeline of interested customers globally, ranging from governments and law enforcement agencies to hotel chains and educational institutions. The Company employed c. 10 staff prior to its insolvency, with certain staff still employed and others willing to assist a buyer following an acquisition.
In the financial year ending 31 December 2019, the Company generated revenues of c. £773k with a gross profit of c. £442k, significant growth on the previous year (c. £448k revenue and gross profit of c. £323k).
The threat detection systems market was valued at $48.38 billion in 2015 and is estimated to reach $119.17 billion by 2022.  The increasing scale and frequency of acts of terrorism across the globe and the growing need for large scale surveillance at public gatherings have driven many governments in terror-affected nations to introduce new regulations making it mandatory to install advanced security systems across airports, commercial centres, and tourist destinations.
This opportunity offers a prospective buyer the chance to acquire a revenue-generating, innovative and market-ready product and the supporting intellectual property and business assets to capitalise on the growing demand for effective threat detection solutions across the globe.
The RPS Brand
Over a decade old, the RPS brand is widely known and highly respected. The brand distinguishes itself from its competitors in the space, offering a one-of-a-kind threat detection solution.
Confidence in the brand was boosted by investment and backing from the European Commission and crowd-funding platform Syndicate Room.
Strong recognition by those influential in the security field has also boosted the brand. RPS won the security category in Prosegur’s “COME IN” open innovation programme in 2020. The Company was also nominated for the Threat Detection Award and commended at the 2019 Counter Terror Awards.
The brand has been publicised by various media outlets, including TechCrunch, SourceSecurity.com, Crowdfund Insider, and Business Weekly.
The Company holds several registered trade marks in relation to the “Optracon” product name and its previous name “Mirtle”, covering computers and scientific devices as well as security services, with broad territorial coverage.
A full trade mark schedule is available to download here.
RPS’ unique Optracon stand-off concealed threat detection solution enables real-time, overt and/or covert screening for concealed weapons, including assault rifles and suicide bomb vests.
Optracon Sensor OM30
The Optracon Sensor (“OM30”) combines state-of-the-art radar, video analytics and AI to deliver disruptive technology that automatically screens multiple people in real-time, at distances of up 30 metres. The sensor effectively detects dangerous concealed items like personal borne explosive devices and assault rifles.
With internal and external installation options, OM30 sensors can screen up to 60 people per minute (3,600 people per hour) in open spaces, detecting threats before they arrive at crowded locations where mass casualties will be sustained, and responders time to take action.
Each sensor incorporates active millimetre radar technology coupled with an integrated pan-tilt head for remote positioning and HD video camera for clear target identification.
OM30 sensors are quick and straightforward to deploy, with multiple sensors networked together for larger applications. Manual operator override is available via client software to allow manual targeting of any remote threat should the need arise.
The units can easily mount on buildings, lamp posts, security towers, or mobile tripods with standard mounting fixtures. With quick setup, units lend themselves to rapid deployment scenarios such as pop-up events and VIP security requirements.
Optracon Management Control Software
The heart of RPS’s concealed threat detection solution, the Optracon Management Control Software (“OMCS”), can manage multiple OM30 sensors via a distributed network, delivering a system that automatically screens thousands of people per hour in real-time. OMCS triggers an alert when detecting targets who may be carrying material capable of causing mass casualties, such as explosive devices and automatic weapons, allowing responders to act swiftly and effectively to contain the threats presented. All images captured are non-invasive, and no personal images are kept or seen on the system.
The OMCS classifiers interpret the data received via the OM30 sensors to detect threat signatures and manage concurrent threats. Clear and precise data is then presented to the operator, including target identifiers (i.e. height/clothing) and threat location (i.e. where the threat is located on the target’s body). Although the Optracon solution is fully automatic, manual override is available for manual targeting of any suspected threat.
Catering for large systems, up to eight OM30 sensors can connect to an OMCS server, with multiple servers supported on any deployment with no loss of threat detection capability.
The Company’s unique approach to using millimetre and sub-millimetre wave radar-radiometric imaging to detect threat items at a stand-off distance is protected by a patent portfolio comprising four patent families with broad international coverage.
The Company’s patent families primarily relate to methods for forming radiometric images and antennae configuration capable of performing these methods. In addition, the patent families focus on the remote detection of objections and identifying specific threat items, creating a diverse portfolio covering multiple aspects of the product and utilising the many innovations captured within the portfolio.
As part of a robust patent management system, the territorial selection was designed to capture the majority of the market locations into which the devices embodying the inventions may be imported and used and countries that have the technological capability to manufacture similar devices and systems.
The primary radio-physics.com domain name is available to acquire.
Website Content & Social Media
The Company’s informational website, hosted at radio-physics.com, showcases the Company’s technology and contains a depth of rich content and imagery.
Rights in the social media accounts are also available to acquire across Twitter, LinkedIn and YouTube.
Machinery & Business Assets
Various items of equipment and other tangible assets are available to acquire.
Offers are due Thursday 18 November 2021 at 4pm GMT.
All expressions of interest and bids are to be directed to Hilco in writing. A Bid Submission Form is available on request. Please contact Hilco to gain access to a virtual data room of further information on signing a confidentiality agreement.
The Joint Administrators acts as an agent of the Company and without personal liability.
The bidder acknowledges that Hilco acts as an agent for the Joint Administrators who offer for sale only what right, title and interest (if any) the Company possesses in the assets. Such sale will be without any warranties, expressed or implied. The information provided has not been verified by Hilco or the Joint Administrators and bidders are deemed to have carried out their own due diligence.
VAT, if applicable, at 20% will be added to the price. A non-refundable deposit of 20% will be payable by the buyer within 48 hours of bid acceptance. Legal completion to occur within 5 business days of bid acceptance. Hilco’s full Terms and Conditions apply.
 MarketsandMarkets, Threat Detection Systems Market by Detection Type (Explosive, Radiological & Nuclear, Chemical & Biological, Narcotics, Intrusion), Product (Dosimeter, Laser, Radar, Video Surveillance, Biometric), Application, and Geography – Global Forecast to 2022 (MarketsandMarkets 2016)