L Squared Acquires Functional Devices, Seeks More Building Automation Deals

The private equity firm plans to invest in new product development and strategic acquisitions to expand the Functional Devices platform.

Published on Feb. 23, 2026

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L Squared Capital Partners has acquired Functional Devices, Inc. (FDI), a leading provider of field devices for building automation and emergency lighting systems. FDI's management team, led by President and CEO Mark Fernandes, will continue to run the business as L Squared looks to make additional acquisitions in the building automation components market.

Why it matters

The acquisition reflects L Squared's focus on the building automation and controls market, which is seeing increased demand driven by factors like energy efficiency requirements, electrification, and growth in data center infrastructure. Functional Devices' RIB® brand is a market leader known for quality, reliability, and ease of installation, making it a strategic platform for L Squared to build upon through new product development and M&A.

The details

Functional Devices is best known for its RIB® (Relay in a Box®) brand of relays, current sensors, power supplies, and other power control products used in commercial buildings, data centers, healthcare, and other high-performance environments. L Squared plans to support FDI's new product innovation, commercial expansion, and strategic acquisitions to deepen its presence in core product categories and expand into adjacent offerings.

  • L Squared announced the acquisition of Functional Devices on February 23, 2026.

The players

L Squared Capital Partners

A private equity investment firm with over $2 billion in assets under management, focused on investing in leading growth companies in education technology, technology-enabled services & software, and industrial technology & services.

Functional Devices, Inc. (FDI)

A leading provider of field devices for building automation and emergency lighting systems, best known for its iconic RIB® (Relay in a Box®) brand of reliable, easy-to-install power control products.

Mark Fernandes

President and CEO of Functional Devices, who invested in the transaction alongside L Squared and will continue to lead the business.

Sean Barrette

Managing Partner at L Squared.

Tyler Huez

Partner at L Squared.

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What they’re saying

“Partnering with L Squared is a significant milestone for Functional Devices. We share a long-term vision for the business that is grounded in delivering dependable, high-quality products and investing in the people who make that possible. L Squared's belief in our team, our new product development engine, and our acquisition strategy make this a natural fit. We are excited to build on our momentum, pursue strategic acquisitions, and create even greater value for our customers, employees, and the buildings and communities we serve.”

— Mark Fernandes, President and CEO of Functional Devices (Business Wire)

“We are excited to partner with the FDI team, who have established themselves as a market standard within building automation systems. Building automation has been a core area of focus for L Squared, and we see a highly fragmented landscape of mission-critical businesses that can benefit from the scale, resources, and brand strength of the Functional Devices platform.”

— Sean Barrette, Managing Partner at L Squared (Business Wire)

“FDI fits squarely within L Squared's core investment strategy, combining a trusted brand, critical products, and a strong operating foundation. We look forward to applying our repeatable value-creation playbook alongside the FDI team to drive the next phase of growth.”

— Tyler Huez, Partner at L Squared (Business Wire)

What’s next

L Squared is currently evaluating a robust pipeline of acquisition opportunities and is actively seeking add-on acquisitions of complementary businesses within the building automation peripheral components market to deepen share in core product categories and expand into adjacent offerings.

The takeaway

This acquisition demonstrates L Squared's strategic focus on the building automation and controls market, where it sees significant growth potential driven by trends like energy efficiency, electrification, and data center expansion. By partnering with the Functional Devices team and its trusted RIB® brand, L Squared aims to build a scaled platform through organic investment and targeted M&A.