The Next Phase of Growth at Functional Devices: Same Mission, More Momentum

If you’ve worked with Functional Devices and our products for any amount of time, you know we like things that are reliable.

Reliable relays. Reliable lead times. Reliable support. Reliable answers when you call with a question that starts with, “Hey Mark, this might be a dumb question…”

Spoiler: it’s never a dumb question. It’s usually a real-world question coming from a real job site, and those are the ones that matter.

Today, I want to share an important update about where we’re headed next and why I’m genuinely excited about it.

Functional Devices has been acquired by a new private equity partner L Squared Capital Partners (“L Squared”), who is committed to investing in our long-term growth, our people, and our mission. Shorehill Capital, our partner since 2019, has supported us through a meaningful period of strategic investment and momentum-building. Now we’re stepping into the next chapter with a partner who shares our long-term view and believes deeply in what we do.

That’s the headline. Here’s what it means in plain language for the folks who matter most: our distribution partners and our end users, the professionals who install, maintain, and depend on our products.

First, what’s not changing

Let’s start with the most important part: we are not changing what has made Functional Devices great.

We are staying Functional Devices. Same brand. Same leadership. Same team culture. Same commitment to quality, responsiveness, and doing right by the people who rely on us.

In engineering terms, we are not rewriting the system architecture. We’re strengthening the foundation and increasing capacity where it counts.

That means:

• Quality stays non-negotiable.

• Support stays personal and practical.

• Innovation stays customer-driven, not trend-driven.

If you’re a distributor, rep, or partner, you should expect continuity in how we work with you and how we show up. If you’re an installer, contractor, or facility professional, you should expect the same dependable performance and the same “we’ve got your back” experience with our products and support.

Why we’re doing this

Growth is a funny word. It can mean a lot of things, and not all of them are good.

Sometimes “growth” means chasing volume at the expense of quality. Sometimes it means changing everything that worked because someone saw a shiny object at a trade show. Sometimes it means making decisions that look great in a spreadsheet and terrible on a job site.

That’s not our version.

For us, growth has always been about expanding the value we deliver while protecting what matters: reliability, trust, and the customer experience.

The reality is, the world around us is changing quickly. Buildings are getting smarter. Expectations are rising. Skilled labor is tighter. Speed matters more. Documentation matters more. “Call-backs” are more expensive than ever. The people who keep buildings running are doing more with less, and they need products and partners they can count on.

We see an opportunity to step forward, invest in the right areas, and serve you better. This new partnership helps us do that with more strength behind the plan.

What this enables us to do next

The investment behind this acquisition is about supporting ongoing growth initiatives. If you’re wondering what that means beyond buzzwords, here’s how I think about it:

Expand capabilities that improve the customer experience

When you build physical products, “capability” can mean a lot: equipment, capacity, automation, supply chain strength, systems, testing, training. The common thread is this: it needs to translate into better outcomes for customers.

Our goal is not to “grow” for the sake of growing. Our goal is to invest where it improves:

• product consistency
• lead times and availability
• speed of support
• clarity of documentation
• ease of installation
• long-term reliability in the field

Accelerate customer-centric innovation

We’re known for dependable building automation and control solutions. We plan to keep earning that reputation by listening hard and building smart.

Customer-centric innovation is not about inventing something because we can. It’s about solving the right problems, the ones you actually face on rooftops, in mechanical rooms, above ceilings, and inside panels.

A few principles we’ll keep using:

• If it doesn’t make installation easier, it better make reliability dramatically better.

• If it adds complexity, the benefit has to be worth it.

• If it creates confusion, we haven’t finished the job.

Innovation can look like new products, improved designs, clearer diagrams, better packaging, better training resources, and smarter ways to support the people doing the work. Often the best innovations are the ones that save you 20 minutes and prevent one mistake. Those are the ones you feel in the real world.

Strengthen support across our core markets

When people say “support,” they often picture a phone number. Yes, that matters. But support is bigger than that.

Support is:

• getting a clear answer fast

• having documentation that matches what you see in the field

• having a partner who understands your constraints

• having consistent product availability

• getting help that respects your time

We’re going to keep investing in the systems and the people that make support excellent. Because the truth is, our products live in complex environments. When something goes wrong, you don’t want a script. You want someone who can think, troubleshoot, and help you get back on track.

A word to our distribution partners and reps

You are not “a channel” to us. You are part of how we serve the industry.
Your teams carry our products, specify them, recommend them, stock them, and help customers choose the right solution. You’re also the first call when something urgent comes up. That’s a lot of responsibility, and we don’t take it lightly.

Here’s what I want you to know:

• We’re committed to being easy to do business with.

• We’re committed to protecting the reputation you’ve helped us build.

• We’re committed to long-term partnership, not short-term noise.

We will continue investing in tools, training, responsiveness, and supply reliability because those make your job easier and your customers happier. If you’ve ever had to explain a backorder to a contractor who is already behind schedule, you know exactly why that matters.

A word to installers, contractors, and facility pros

If you install or maintain our products, you’re the person I think about when we make decisions.

You don’t have time for guesswork. You don’t have time for vague diagrams. You don’t have time for components that behave differently than they should. You’re juggling safety, schedules, inspections, and the reality that buildings do not politely stop being occupied just because you need to troubleshoot something.

Our commitment to you is simple:

• We will keep building products you can trust.

• We will keep making them practical to install.

• We will keep backing them with real support.

• We will keep improving based on what you tell us.

If you’ve ever thought, “This should be easier,” I want to hear it. Those comments shape what we build next.

What “measured growth” looks like (yes, I’m an engineer)

I’ve been called measured. That’s fair. I like plans that hold up under pressure.

So here’s what measured growth means to me:

• We invest in the long term, not the quick win.

• We don’t compromise quality to hit a number.

• We don’t overpromise.

• We validate changes before we scale them.

• We protect the customer experience like it’s a core product feature. Because it is.

You can probably tell I’m not the type of CEO who says, “We’re going to disrupt everything.” (If you ever hear me say that, please check if I’ve had too much coffee.)

We’re not here to disrupt. We’re here to deliver. Better. Faster. More consistently. With the same integrity that got us here.

A quick thank-you to Shorehill Capital

Shorehill Capital acquired Functional Devices in 2019 and supported us through a period of strategic investment and continued momentum. I’m grateful for that partnership and proud of what our team accomplished during that chapter.

Now we’re building on that foundation with a new partner who shares our mission of enhancing lives in buildings and beyond, and who intends to invest in the people and operational strength that have made Functional Devices a trusted name in the industry.

That alignment matters. A lot.

What you can expect over the coming months

You can expect us to communicate clearly and directly as we move forward.

You may see:

• expanded capabilities and investments that improve reliability and responsiveness

• product development that stays grounded in real-world needs

• continued focus on documentation, training, and support resources

• process improvements that make us easier to work with

What you should not expect:

• a shift away from quality

• a change in who we are

• a move toward “flash over function”

The bottom line

Our business has always been built on two things: delivering high-quality, dependable products, and doing right by our employees and the people who rely on our products.

This new partnership is a strong match because they believe in our products, our team, and where we’re headed next.

We’re excited about what this enables us to do for our customers, our employees, and the buildings and communities we ultimately serve.

If you’re a partner, thank you for building with us.

If you’re an end user, thank you for trusting us in the field. We don’t take it for granted.

And if you have questions, feedback, or ideas, I’ll say what I always say: reach out. We’re listening.

Here’s to the next phase. Same values. More momentum!

Mark Fernandes
President and CEO, Functional Devices, Inc.