TORONTO — AlarmForce Industries issued a statement today announcing its board of directors has completed a strategic review and decided not to pursue selling the company.
During the past eleven months, a special committee of the board of directors explored and considered available opportunities for the Toronto-based firm, including a possible sale of the company. The special committee, comprised of four independent directors, has concluded that the strategic review process did not result in a transaction adequately reflecting the company’s value, AlarmForce said.
As such, the company said its board has decided to conclude the formal process and dissolve the special committee. The company noted that it will now move forward with a focus on the company’s growth.
AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers throughout Canada and select markets in the United States.
The company first announced in August 2012 it had hired Imperial Capital as a financial adviser to help its board in the identification, evaluation and negotiation of potential transactions. Neither AlarmForce nor Imperial Capital could be reached for comment.
John Brady, president of TRG Associates Inc., tells SSI that AlarmForce may have found it difficult to strike a deal to its liking given that the Canadian market is not viewed as robust an opportunity by U.S. companies or other investors. Also, AlarmForce’s growth profile may not have been of the same stature as other large companies that recently came to market.
“The valuation in the market could have been well under the board’s expectations,” he says.
Rodney Bosch is Managing Editor for SECURITY SALES & INTEGRATION. He can be reached at (310) 533-2426 or firstname.lastname@example.org.