Safe Systems Purchases 400 Accounts, Expands Colo. Footprint
LOUISVILLE, Colo. — With its recent purchase of Pueblo, Colo.-based D-Tech Alarm Specialist, independently-owned Safe Systems Inc. based here now services more than 10,000 customers. Terms of the deal, which closed in April, were not disclosed.
The acquisition is part of the company’s strategy to become the premier security business in the Colorado Front Range area, Safe Systems Sales Manager Tim Watson tells SSI. The Front Range area includes Boulder, Colorado Springs, Denver, Fort Collins and Pueblo.
Founded in 1982 by Larry Halpern, Safe Systems is a full-service electronic security provider with its own UL-Listed central station. With roughly 55 employees, the company services 60-percent commercial and 40-percent residential accounts.
Purchasing D-Tech Alarm brought in 400 new clients for the company, says Watson. “D-Tech serviced 60-percent residential and 40-percent commercial. They primarily offered simple intrusion alarms to their customers and a limited amount of video,” he says. “One of the things we can bring to the newly acquired customers is technology.”
As a Honeywell First Alert dealer, one of the products Safe Systems will offer new clientele is Total Connect. The solution allows control of intrusion and surveillance systems remotely via Web-enabled devices, such as smartphones. The company also specializes in hosted and managed access control, and plans to introduce video verification to its clients.
“We also have the largest radio network in Colorado,” says Watson. “We can do fire alarm monitoring off of that radio network, allowing people to eliminate their phone lines. For fire systems, users need two dedicated phone lines. With our way, we’re able to help customers save a significant amount of money on fire alarm monitoring.”
Prior to the acquisition, Safe Systems’ recurring monthly revenue (RMR) totaled about $320,000, says Watson. In fact, despite the economic downturn, the company had a double-digit increase in business. How was Safe Systems able to do that?
“About three years ago, Larry Halpern put together a new executive team,” says Watson. “We took a look at our sales force and we made a decision to double it despite the state of the economy. Once that was in place, and we continued to see organic growth, we opted to do some strategic acquisitions.”
Marketing, of course, played a major role in the company’s growth. Safe Systems invested in online and radio advertising, as well as Web site optimization. “We literally made ourselves a different company,” says Watson. “It’s not just about getting the message out. It’s having the right products, services and the reputation for quality.”
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