ASG Security Adds $114K in RMR During 2nd Quarter
BELTSVILLE, Md. — Having closed four transactions in the second quarter of its 2013 fiscal year, ASG Security acquired 2,600 accounts representing $114,000 in recurring monthly revenue (RMR).
The deals include the acquisitions of full-service security firm Allied Central Station of Oceanside, N.Y., and Feel Safe Systems Group of Owing, Md. The firm also purchased accounts in Louisiana from Alarm Protection Technology, a North Salt Lake, Utah-based firm, and accounts from a company in Texas. Roughly 78% of the acquired accounts are residential, ASG Security CFO Ralph Masino tells SSI.
Started 37 years ago, the family-run Allied Central Station previously had its own central station, but now operates solely as a security company. By acquiring the firm, ASG will expand its presence in Nassau County, N.Y.
Feel Safety Systems Group’s operations, which started in 2009, will fold into ASG’s Beltsville, Md.-based office, while the firm’s Louisiana branch, which ASG opened last year, will service the APT accounts.
The transactions allow ASG to add about 10 employees to its roster, including former Allied Central Station owner Jon Wapner.
“About half of the employees are technical, and one of the technicians is NICET Level IV certified,” Masino says.
The acquisitions help ASG, which exited 2012 with $7.9 million in RMR, to remain on track to add more than $1 million of RMR during 2013.
“Our acquisition activities in the second quarter represent about 24% of our total RMR growth,” Masino says. “In terms of overall RMR growth, we expect 2013 to be similar to the last several years at ASG. We expect our acquisition activities to be in the 25 to 30% range of total RMR growth.”
Roughly 70% to 75% of the company’s growth comes through its organic sales, which ASG plans to continue to build by offering interactive and cloud-based video services.
“People are aware that these services are out there, and there is a really strong appetite out there, so we’re out there telling that story first,” ASG Security Senior Vice President of Sales & Marketing Bob Ryan tells SSI. “That awareness will translate into a demand, and the people are going to expect that that’s what your company provides. If you don’t, your company isn’t going to be around for very long.”
Ashley Willis is associate editor for SECURITY SALES & INTEGRATION. She can be reached at (310) 533-2419.
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