Integrated Alarm Services Group Inc. says it will acquire about 9,600 residential alarm contracts in Minnesota.
The contracts, generating approximately $235,000 in recurring monthly revenue (RMR), are being acquired from the Minnesota natural gas operating subsidiary of CenterPoint Energy. The contracts have been monitored and serviced by IASG’s South St. Paul, Minn., central station since 1998 and will continue to be monitored at this site.
The purchase price for the alarm contracts is about $7.8 million and represents a purchase multiple of 33 times RMR. Consideration for the Minnesota account acquisition comes from IASG cash balances.
“Having monitored the portfolio for some time we are quite familiar with the characteristics of the CenterPoint accounts,” says Charles May, president and CEO of IASG. “These Minnesota accounts fit our portfolio criteria very well and have excellent geographic concentration.” Andrea Newman, vice president, retail services of CenterPoint Energy, says a major consideration for CenterPoint was that IASG has a local monitoring and customer service presence.
“IASG has been our authorized provider of monitoring and service for several years,” she says. “IASG represents the best fit for both CenterPoint Energy and for our customers.”
