Seattle-Area Residential Integrators Combine
In a marriage of Seattle-area residential system integrators, Home Technologies Inc. has acquired fellow Bellevue, Wash.-integrator Digitech Home Systems LLC and plans to use the combined power of the two companies to build a dealer network on the West Coast. According to Home Technologies, Digitech is Washington’s largest home systems integrator and the 15th largest in the nation with 2003 revenues exceeding $7 million.
Under the July 13 cash and stock deal, for which the purchase price was not disclosed, Digitech will change its name to Home Technologies-Bellevue and become a wholly-owned subsidiary of Home Technologies. Both companies install security systems, as well as structured wiring, video/audio, lighting, telecom and other systems for the home.
Home Technologies CEO and Chairman of the Board Lee Travis tells Security Sales & Integration that the Bellevue subsidiary will act as a springboard for a dealer network that will be dedicated to bringing a new customer experience to the industry.
“Digitech is a very important part of our puzzle. It allows us to have a pilot to test out systems and technologies before we release them out to other locations,” Travis says. “There is great talent within Digitech. We have a ton of ideas to improve the consumer experience.”
Travis says the main thrust of Home Technologies and its dealer network will be a business model of standardized installation services and offering the customer different packages and price points for systems. “Most customers want simple, reliable performance,” he says. “If you look at the industry, the meetings go something like what’s available, what you want to spend, etc. We have already found in testing that if we assemble systems in different packages and price points, it allows the client to be comfortable with their purchase.”
While there will be some fine-tuning in the former Digitech’s operations, Travis says to expect growth in both the subsidiary and its new parent company as a result of the acquisition. Home Technologies says it will build up its dealer network through acquisition and franchise opportunities, though it will limit the network for the time being to the West Coast. “We’re looking for dealers in the market who want to leverage the assets they have and be part of something bigger and more successful,” Travis says. “In the end, you need to be tied to something bigger to grow.”
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