SAFE Security Strikes Deal to Acquire Safeguard Security
SAFE Security picks up approximately $1.5 in RMR along with 25,000 customers in Arizona.
SAN RAMON, Calif. – SAFE Security has acquired Scottsdale, Ariz.-based Safeguard Security and Communications, representing approximately $1.5 million in recurring monthly revenue (RMR) and 25,000 customers.
“We are excited to partner with this fine company and intend to maintain the operations that have made Safeguard one of the premier regional security companies in the United States,” Paul Sargenti, SAFE Security President and CEO, said in a press release. “Safeguard’s and SAFE’s cultures are an excellent fit and we intend to continue the tradition of excellence that has made Safeguard a success for over 50 years.”
Safeguard Security CEO John Jennings, a member of the SSI Industry Hall of Fame, said when the time came to sell the company and begin a new chapter for he and his family, selecting the right buyer was crucial.
“Honestly, there was only one choice I thought would be the right match for continuing the tradition of excellence I’ve worked so hard to establish,” Jennings said. “Paul Sargenti and SAFE Security are known for fair dealing and common sense when it comes to mergers and acquisitions. I wanted the buyer for my company to appreciate what I’ve accomplished, as well as a buyer with a culture that would respect the people who helped me build Safeguard. I’m confident that together SAFE and Safeguard will continue to serve the Arizona market with distinction and quality.”
Founded in 1961, Safeguard initially focused on high income clientele, particularly those who had second homes in the Paradise Valley area outside of Phoenix. The company would quickly become a leading security provider for gated communities requiring patrol and guard services.
Safeguard later added school districts, homeowner associations and commercial clients to its customer base throughout the greater Phoenix, Tucson and Prescott markets, and beyond. In November 2013 the company divested its New Mexico operations, selling 1,400 mostly residential accounts to Alarm Capital Alliance (ACA) totaling more than $50,000 in RMR.
SAFE Security, founded in 1988, bills itself as one of the few fully national alarm companies with operations in 50 states, Puerto Rico and Canada. The company was acquired by ICV Partners (ICV), an investment firm focused on lower middle market companies, in December 2012. Since then the company has remained acquisitive. Among its transactions were 16,000 CastleRock Security residential and commercial alarm monitoring subscriber accounts from Alarm Funding Associates, and 35,000 subscriber accounts from Pinnacle Security.
Also under the SAFE corporate umbrella is the central station SAFE Monitoring Technologies, full service alarm company California Security Alarms, plus a dealer program, an authorized national service provider network, and the resource infrastructure to provide business and account management services.
Terms of the deal for Safeguard Security have not been made public. SAFE Security was advised by SPP Advisors; Safeguard Security was advised by Mitchell, Silberberg & Knupp.
SSI continues to report this story.
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