Alert 360 Strikes Deal to Merge With My Alarm Center
The combined company will create one of the largest, full-service residential and commercial security companies in the United States.
TULSA, Okla. and NEWTOWN SQUARE, Pa. — Alert 360 and My Alarm Center on Thursday announced they have entered into a definitive merger agreement to create a leading operator in the highly fragmented smart security industry.
Funds managed by Invesco will be the majority owners of the combined business upon closing. Terms of the transaction were not disclosed.
When combined, the company will have pro forma revenue of more than $200 million, serve approximately 350,000 customers and employ nearly 1,000 security experts across the United States.
The increased scale and relevance of the combined company is said to enable it to realize meaningful synergy potential, capitalize on its strong organic growth engine and serve as a platform for continued industry consolidation.
Richard Ginsburg, current president and CEO of Alert 360, will lead the combined company as chief executive. Anastasia Bottos, current president and COO of My Alarm Center, will continue in the same roles with the combined business. Vickie Catina, current CFO of Alert 360, will continue in that role for the combined company. Amy Kothari, current CEO of My Alarm Center, will step down and remain a member of the board of directors.
“Our first focus has always been on the customer. We believe the combined company will be better able to serve existing and future customers through increased investments in sales, marketing, and innovation,” says Ginsburg, an SSI Industry Hall of Fame inductee. “I am very excited to work alongside such a dedicated team of employees in order to make the combined company into a truly transformational industry competitor.”
Paul Triggiani, managing director of Invesco Credit Partners, comments, “We believe the residential and commercial security industry is at a key inflection point with the growth of increasingly complex home automation solutions at the forefront. To succeed, industry players need significant size, scale, and financial flexibility in order to capitalize on rapid technological progress.”
Debt financing for the acquisition is being provided by Pathlight Capital. Upon completion of the transaction, the combined company will have one of the lowest levels of debt leverage in the smart security industry, providing it with significant financial flexibility, according to the announcement.
The transaction is expected to close before the end of the year. The deal has cleared the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, according to the announcement.
Greenhill & Co. and Raymond James served as the financial advisor to My Alarm Center, with Ropes & Gray serving as legal counsel. Houlihan Lokey served as the financial advisor to Alert 360, with Gibson, Dunn & Crutcher serving as legal counsel.
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