Private equity firm L Squared has acquired Functional Devices, a move that brings the company's existing management team into the ownership structure. Mark Fernandes, president and CEO of Functional Devices, along with the current leadership team, invested alongside L Squared in the transaction.

The deal structure is notable for keeping Functional Devices' leadership intact, with Fernandes and his team continuing to run day-to-day operations. This management participation suggests confidence in the company's future growth potential under L Squared's ownership. The transaction represents another strategic add-on for L Squared's portfolio.

While financial terms weren't disclosed, the investment underscores the ongoing appetite for industrial automation and control systems companies. Functional Devices' continued leadership signals stability for customers and employees during the ownership transition, a common approach in private equity acquisitions of established manufacturing businesses.