Andrew Nikou is a Canadian businessman who is the founder and CEO of OpenGate Capital, a global private buyout firm.
The firm is focused on the acquisition of lower to middle market businesses that are often privately owned, or non-core divisions of larger companies located around the world. To date, the firm has completed more than 75 transactions, including acquisitions and divestitures, and has acquired more than $8 billion in gross consolidated revenues. The firm first gained recognition for the acquisition of TV Guide Magazine in December 2008, and the publication's turn to profitability in the first quarter of 2010.
Nikou is actively involved with the management of each of the companies held in the portfolio.
Nikou has received recognition for his business achievements. In 2012, Nikou was a recipient of The M&A Advisor's "Top 40 Under 40" award, for the West Region. In 2010, Nikou was named a Top Dealmaker of 2010 by Mergers & Acquisitions magazine. however, his actions have also drawn substantial criticism, including numerous lawsuits.
Early years
Nikou was born in 1977 in Vancouver, British Columbia, Canada. His parents left their native Tehran before the Iranian Revolution and relocated to Canada, later moving with Nikou to California when he was four years old. His father, who majored in mathematics at a German university, worked at the Los Angeles Department of Water and Power.
Nikou grew up with a passion for trading baseball cards and competing in breakdancing competitions. He was bullied in school for being short.
Nikou graduated from William Howard Taft Charter High School in Woodland Hills, California, where he was active in the Persian community. Nikou studied finance at the University of Southern California Marshall School of Business. After graduating, he worked for the Patent and License Exchange, a start-up financed by Softbank Capital.
Career
Platinum Equity
In 2001, Nikou began his career in private equity at Platinum Equity. At age 25, he moved to Paris to help open the firm's first European office. At Platinum Equity, he expanded the firm's international presence in Europe. In 2004, he left Platinum Equity and moved back to Los Angeles to start his own global investment firm.
OpenGate Capital
In 2005, Nikou founded OpenGate Capital with $30,000 from his own savings.
Fortune 500 division acquisitions
Under Nikou's leadership, OpenGate Capital bought founder-owned businesses and divisions of Fortune 500 companies such as Philips, Schlumberger, Arvin Meritor, Stora Enso and Cascades. In 2006, OpenGate purchased OMMIC, a former division of Philips. OpenGate sold OMMIC to Egalux SA Luxembourg in 2008.
In 2019, OpenGate purchased the lock company Sargent & Greenleaf from Stanley Black & Decker.
Media acquisitions
In 2008, Nikou negotiated the deal for OpenGate Capital to acquire TV Guide for $1 and $50 million in assumed liabilities from owner Rovi Corporation (previously Macrovision). Later that year, Nikou led OpenGate Capital's bid for McGraw-Hill Companies BusinessWeek magazine, then withdrew from the bidding. Also in 2009, OpenGate purchased children's publishers Fleurus Presse and Junior Hebdo from Groupe Le Monde. In 2010, Nikou was behind the OpenGate bid for Newsweek, owned by the Washington Post Company, but the firm did not acquire the publication.
International acquisitions
Nikou increased OpenGate's pace of international acquisitions in the 2010s.
In 2019, OpenGate acquired the German content-management platform CoreMedia. Also in 2019, OpenGate purchased the UK-based Duraco Specialty Tapes, which then acquired Infinity Tapes the following year. In 2018, OpenGate acquired the Italian stove and fireplace manufacturer Jotul from the European private equity group Ratos.
In 2012, through the firm's legacy, pre-fund investment process, OpenGate Capital acquired the Latin American operations of Getronics from the Dutch conglomerate, KPN. In 2011, the firm acquired NorPaper Avot Vallée, a specialty paper manufacturer based in France. And in 2010, OpenGate acquired Brazilian-based Philips Business Communications, since renamed Sopho which was merged into Getronics LATAM, and Finland-based KotkaMills, a laminating paper and wood business.