MEDIA, Pa. — A partnership between Alarm Capital Alliance (ACA), an independently-owned company that helps alarm companies with acquisitions, and global investment firm Norwest Venture Partners (NVP), will help ACA expand its business and pursue strategic opportunities.
“We had been contemplating a transaction for the last couple of years,” ACA CEO Amy Kothari tells SSI. “In response to significant unsolicited interest from the market, ACA hired an investment bank, Morgan Keegan, to manage a formal process of identifying investors.”
ACA’s solid reputation in the industry attracted NVP to invest in the company. In 2011, ACA added more than 11,000 customers, improved its infrastructure and partnered with dealers through portfolio acquisitions and the company’s dealer program, Kothari says.
And, with a report by research firm Global Industry Analysts projecting the security alarm industry will grow into a $43 billion market by 2015, NVP representatives felt ACA is poised to tackle the marketplace.
“ACA is attacking the market in a unique way with its multi-channel strategy for acquiring alarm customers,” NVP Partner Sonya Brown tells SSI. “We are also at an inflection point with newer technologies. There is a rapidly increasing adoption of interactive and home automation solutions, and ACA understands this market.”
NVP, which has $3.7 billion in capital under management, is no stranger to working with security companies. The firm invested in Masada Security, which was acquired by Ameritech Communications Corp. in 1997. Having financed other growth companies, NVP plans to help apply the best practices learned from those experiences to ACA.
Additionally, ACA will have access to NVP’s network of technology, marketing and recruiting relationships to assist it in pursuing multiple strategic growth initiatives. ACA will aim to continue building its business by acquiring traditional security alarm contracts, among other initiatives..
“We’re also looking to expand our independent dealer program,” Kothari says. “We also want to increase our direct-to-consumer sales and marketing effort in select markets. And, of course, we want to look for other unique business opportunities and partnerships within the industry.”
NVP’s Rob Arditi and Brown will join ACA’s board of directors.
Ashley Willis is associate editor for SECURITY SALES & INTEGRATION. She can be reached at (310) 533-2419.