FALLS CHURCH, Va. — Kastle Systems has acquired Mutual Central Alarm Services and Stat-Land Security Systems from ADT in a deal that expands the firm’s footprint in the greater New York metropolitan area.
As part of the transaction, Kastle Systems will add 4,000 customer sites, which include high-end retailers, upscale jewelers and financial service clients. Additionally, the firm now operates a UL-Listed, CSAA Five Diamond-certified central station, approved by the FDNY, and will add 72 employees to its roster. Both Mutual and Stat-Land will function as independent operating groups of Kastle Systems, Brian Eckert, executive vice president of Kastle Systems, tells SSI.
“The heritage and reputation that these two companies have is something that we want to preserve initially,” he says. “We want to get to know their customers. We want to get to know the teams even deeper than we do today, and look for ways to leverage each other’s strengths.”
The firm had been considering ways on how to grow its presence in New York, when Kastle Systems Chairman Mark Ein learned that ADT planned to divest Mutual and Stat-Land from its operations.
ADT didn’t have the properties for very long, as the firm obtained the companies as a result of its purchase of Devcon Security in August. It made sense for ADT to sale Mutual and Stat-Land because they concentrate on medium- to high-end commercial jobs, whereas ADT’s core focus is on residential and small commercial installations, Imperial Capital Managing Director John Mack tells SSI.
“This is a good deal for ADT because they are getting a quick and efficient divestiture of this business,” say Mack, who advised ADT on the deal. “As for the Mutual and Stat-Land teams, they want a company that is willing to invest money to grow the business. They want to be with someone who has the technology, services and national footprint.”
With its acquisition of cloud-based intelligent video surveillance manufacturer CheckVideo in April, Kastle Systems, which Eckert describes as a “managed services company,” will offer its newly acquired companies enhanced video services.
“Those companies are looking for ways to apply video to enhance security for its high-end clients, and it’s something that we bring to the table,” Eckert explains. “That type of solution has a lot of relevance for that sector today.”
Eckert declined to release the terms of the deal or how much recurring monthly revenue the deals brought in, but mentioned that the firm’s existing lenders, CapitalSource Bank and Capital One, provided the debt financing.
Described by Eckert as “a managed services company,” Kastle Systems provides outsourced electronic access control and security services for more than 2,000 properties with more than 37,000 businesses throughout the United States. Established in 1972, the firm has offices in Los Angeles, San Francisco, Dallas, Houston, Chicago, Atlanta, New York, Philadelphia, and Sydney, Australia.