BELTSVILLE, Md. — Following last week’s acquisition of an Oklahoma City-based dealer, ASG Security closed a deal Monday to purchase Texana Security, a full-service alarm company and security systems provider with multiple offices in Texas.
Previously owned by Luther King Capital Management, Texana Security brings more than 21,800 customers, 90 employees and $500,000 in recurring monthly revenue (RMR) to ASG. The mix of 60% residential and 40% commercial clientele is serviced from four locations in Texas: Weslaco (Security Depot), San Angelo (San Angelo Security Services), Abilene and Dallas. The company also owned and operated a central station in San Angelo.
Further bolstering its footprint in Texas, ASG also launched two branch offices in Austin and Corpus Christi, which opened in September and November, respectively. Both locations operate with management, sales and technical staff. Together with the Texana acquisition and its own organic growth, ASG’s presence in Texas now totals 10 branch offices, including Houston, San Antonio, Laredo and McAllen.
“Because we are so well rounded — half our company being in the West and half in the East — Texana makes a lot of sense because it did a couple of things for us. No. 1, it married into our existing branch in the Rio Grande Valley, where we already have $644,000 in recurring revenue and pretty much own that whole valley,” ASG Security President and CEO Joe Nuccio tells SSI. “The St. Angelo and Abilene offices, which are new platforms for us, give us great opportunity to go out and do everything we have done in all of the other branches. It has made Texas a great opportunity for us.”
Notably for ASG, Texana ran a successful national accounts operation in Dallas that will augment the company’s existing national accounts office in Lancaster, Pa., says Senior Vice President of Sales & Marketing Bob Ryan. Historically, ASG’s national accounts office has maintained a low profile, electing to methodically pursue a smaller, regionally-based clientele. With the addition of Texana’s Dallas operation, ASG will ratchet up its national accounts efforts in 2012, Ryan says.
“As the economy slowly comes back, we are going more from maintenance and service of our existing national accounts into a growth mode,” he says. “Adding this component from Texana, which has some success in the utility sector, we are going to get back into a growth mode.”
ASG’s acquisition of LV Systems of Oklahoma City on Dec. 15 included 6,150 accounts, 29 employees, about $115,000 in recurring monthly revenue (RMR), plus the company operated its own central station. In addition to the Texana and LV transactions, ASG’s acquisition activity in 2011 involved eight separate smaller deals that amounted to $187,000 in RMR. Total acquisition activity for ASG in 2011 is valued at $785,000 in RMR. The firm’s total RMR will exceed $7 million in 2011.
As ASG readies for the New Year, Nuccio says he’s excited about the opportunity to continue executing the firm’s strategic initiatives, which include a mix of acquisitions and organic expansion as a primary driver of RMR growth.
“In 2012 we will be looking to continue to build out the East as we have done and we are looking to continue to build out the West, and contiguously, if those opportunities arise,” Nuccio says.
ASG’s expansion plans for 2012 will also include increasing its sales headcount at all of its existing and new markets, Ryan says. Planned sales rep headcount in 2012 will be more than 300 sales representatives across ASG’s market territories and nearly 1,000 total employees across the enterprise.
“We have 25 business units, each with a sales manager sitting over it. Just by increasing the headcount by one rep in each of those areas across our enterprise is going to make a very big difference to our organic sales efforts in the year ahead,” Ryan says.