ASG Security has completed a deal to acquire Encompass Security of Southlake, Texas, bolstering its already sizeable Dallas-Fort Worth branch operations. Terms of the deal were not released.
ASG Security Senior Vice President of Sales & Marketing Bob Ryan tells SSI Encompass brings to the company an integration specialist with about 500 accounts, plus a particular expertise in creating recurring monthly revenue (RMR). Many of the accounts are mid- to high-end intrusion, access control, video surveillance and fire/life-safety installations in verticals such as commercial, education and health care, Ryan says.
“What we like about them is they are very good at converting those large projects and getting recurring services. That is where a lot of integrators want to be, but a lot of them just haven’t figured out how to get there,” he says. “We have found a diamond in the rough that has figured it out. They really fit our needs.”
Anchored by a successful residential operation, ASG’s Dallas-Fort Worth branch generates more than $1 million in RMR, according to Ryan. And while the company did not release the amount of recurring revenue it acquired in the transaction, he says Encompass does generate “a couple million dollars in installation revenue per year.”
“Our Dallas operation is very strong residentially and this company completes the branch the way we want it to look,” Ryan says. “This gives us the ability to tackle some of the bigger projects and we get a readymade staff that is very good at that.”
ASG will fold Encompass’ 12 employees into its Dallas office, including Executive Vice President Richard Hambrick and Director of Operations Karl Morgan. The principal owner of Encompass, Ray Gilley, will provide consulting services in the short term prior to leaving the company.
The transaction was handled by ASG CFO Ralph Masino with the Davis Marketing Group assisting Encompass in the transaction.