By Ashley Willis
MEMPHIS, Tenn. — State Systems Inc., a fire protection, low voltage and cabling company, recently acquired Communications Technology Group Inc. (CTG), a communications systems and low-voltage services firm. Terms of the deal were not disclosed.
The transaction allows State Systems to enhance its structured cabling division, as well as offer voice over Internet protocol (VoIP) and business telephone systems and services. State Systems also expects CTG's digital signage sector to broaden its range of services.
In addition, the company will offer former CTG clients fire protection and low voltage services, such as fire alarms, fire extinguishers and fire suppression systems. The company also offers access control and CCTV systems.
Started in 2003 by Larry Brown and Doug Wylie, CTG struggled to endure the declining economy. However, after the sudden death of Brown last year, Wylie decided to sell the business. As a result, he hired a broker who posted the listing online, Wylie tells SSI.
Because his business, which started out as a fire protection company in 1986, morphed over the years due to of acquisitions, State Systems President and CEO Bob McBride thought CTG would be a good fit.
"I noticed CTG's description was for a cabling company, and we were doing cabling," he tells SSI. "We've never done telephone systems in the past, so it seemed like it would work out. I contacted the business broker and them we just developed talks through him."
Adding roughly 500 accounts, State Systems now has more than 5,000. All but one of CTG's employees stayed on with State Systems, including five field technicians, a project manager and a salesperson.
"I definitely wanted to make sure that all the employees had a place to work," says Wylie, who now works as a salesperson for State Systems. "My partner and I built this legacy, and I wanted it to live on. Bob has proven that he has grown a very reputable and quality business, so it's a really good transition for us."
Because CTG and State Systems employees were already knowledgeable in the structured cabling market, not many people are undergoing training. However, there are plans for technicians to receive training on business telephone installations in the future, McBride says.
Ashley Willis is associate editor for SECURITY SALES & INTEGRATION magazine. She can be reached at (310) 533-2419.