FT. LAUDERDALE, Fla. — ASG Security has acquired National Alarm Systems, a provider of security and fire alarm systems here, in a deal that brings nearly $300,000 in recurring monthly revenue.
Completed on Jan. 31, the transaction allows ASG to expand its geographical footprint to Florida. The firm has acquired 9,149 accounts (54% residential, 46% commercial), as well as all 36 National Alarm Systems employees. National’s co-owner, Bob Swayman, will now serve as ASG’s vice president and general manager of the South Florida region.
ASG CEO Joe Nuccio tells SSI he has been eyeing National Alarm Systems “for a long time.” National proved to be an attractive target for its strong management team and how the company has been structured to create sales, both in residential and small business.
“For us the platform and the market was really the right size. This gives us the opportunity to continue to grow the Florida market by creating more internal sales,” Nuccio says. “We want to think about doubling [National’s nearly $300,000 in RMR] in the next couple years, which we think is very realistic. Those opportunities are there because Florida has always been a very good market, especially for residential and small business.”
ASG will immediately begin to implement its sales strategies at National to boost traditional offerings such as intrusion, fire, video and access control, along with its portfolio of interactive services, explains Bob Ryan, ASG’s senior vice president of sales and marketing.
“We have taken some of those categories that have traditionally been more product-sale oriented and turned those into RMR-generating services,” Ryan says. “We have done a really good job with our enhanced and interactive platforms for residential under our ASG Connect brand. We think there is a tremendous opportunity to leverage that with National.”
Established in 1949, National Alarm Systems provides access control, data entry systems, fire, internet monitoring intrusion and video surveillance solutions to customers in Palm Beach, Broward and Dade counties. The firm also boasts a successful homeowners’ association (HOA) RMR business model, which appealed to ASG.
“There are a few companies out there in the industry that have done very well with the HOA model and National is one of them,” Ryan says. “We want to learn their trade secrets and export those to our other branches if we think it can work.”
ASG ended 2013 with $8.8 million in RMR, an increase of $900,000 compared to the previous year. At least a quarter of that activity came through the firm’s acquisition activity, including $175,000 in acquired RMR in the fourth quarter of 2013. ASG also established three new branches in Long Island, N.Y., Norfolk, Va., and Monroe, La., as well as adding 60 employees to help fuel the company’s planned growth in those new markets.
This year, the firm’s 2014 business plan calls for continued organic sales growth through new product and service offerings including further development of its ASG Connect and ASG Video interactive and cloud-based RMR generating services.
With the success of its latest acquisition, ASG, which recently bolstered its credit facility with a $30 million expansion to $300 million, predicts 14% growth while surpassing $10M in RMR entering 2015.
Davis Marketing Group helped National Alarm Systems with the sale.