Argyle Security Acquisition Corp., a special purpose acquisition company dedicated to acquiring companies in the security industry, announces its agreement to acquire ISI Security Group, a provider of detection equipment, products and service solutions.
ISI Security Group, the holding company of three solution providers in the physical security industry, including ISI Detection Contracting Group Inc., Metroplex Control Systems and Metroplex Commercial Fire and Security Alarms, agreed to be acquired for a combination of cash and stock. Among the financial compensation details, shareholders will receive $16.3 million in cash and 1.18 shares of Argyle Security at closing, representing approximately 20 percent in Argyle. Argyle will assume $6 million of ISI long-term debt.
About the acquisition, Argyle Security Chairman and Co-CEO Bob Marbut says, “Our goal is to establish Argyle Security as a leading global company in the rapidly growing security industry, focusing particularly on the consolidation opportunities created by new applications of digital technology, the convergence of various security sectors and growing customer demand for solutions.”
“Argyle gives us the ability to grow rapidly, through acquisitions and start-ups, put offices in targeted locations throughout the country and expand our business,” says Sam Youngblood, CEO of ISI.
According to the terms of the transaction, which must still satisfy customary closing conditions and be approved by Argyle shareholders, ISI will function as a wholly owned subsidiary of Argyle Security. All key executives will remain with the company, including Youngblood, who will continue as CEO.
