Infrastruct Security Receives Private Equity Funding
Infrastruct Security Inc., provider of turnkey security solutions designed for commercial and industrial sites, announces it has been infused with recent private investment financing that will help the company meet its initial business goals within its first year of operation.
Part of the proceeds from a $3 million second round of financing were used to merge with Dowley Security, based in Oklahoma City, Okla. The merger takes Infrastruct Security to a more than $20 million company with offices in Houston, Oklahoma City, Tulsa, Okla., and Phoenix. A new office is also opening in Baton Rouge, La.
“Our plan has always been to start dominating Houston, then the region and then a niche and to crest over the $20 million mark,” says Daniel Weiss, CEO and president of Infrastruct. “Now we have the size and the niche. We have met two big goals for the company six months earlier than expected.”
In June 2006, Infrastruct was formed with the contribution of General Cabling and Security (GCS), founder Weiss’s second security startup. In the first round of financing, featuring investors Murphree Venture Partners, Stonehendge, Jeminson and Louisiana Fund, GCS merged into a new company, Infrastruct Security. Since that time, Infrastruct has made one major acquisition, Monarch Security in November 2006, and three smaller acquisitions.
Although Infrastruct has grown considerably through its acquisitions, Weiss stresses the company still generates 70 percent of its revenue from organic sales and recurring revenue.
“The Infrastruct Security model is unique: We are an integrator that produces monthly recurring revenue [RMR]; we do not live and die for the next big project,” he says.
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