BOSTON — Private equity firm Hellman & Friedman has acquired a controlling interest in DIY home security company SimpliSafe.
Funds affiliated with Hellman & Friedman have entered into an agreement with SimpliSafe CEO and Founder Chad Laurans to accelerate the company’s growth and expansion of the home security market, the company announced today.
Terms of the transaction were not disclosed; however, sources close to SimpliSafe told TechCrunch the deal valued the company at about $1 billion. The transaction is expected to close in the third quarter of this year, subject to the waiting period under the HSR Act and other customary closing conditions.
The company, based here, is one of the largest and fastest growing home security providers in the United States, with more than two million customers.
“Home security is at an inflection point. Despite the market’s growth, today still only 20% of homes are protected,” Laurans states in the announcement. “With innovative technology, unparalleled service, and radically fair prices, SimpliSafe is rapidly making its vision of ‘every home secure’ a reality.”
In January, the company launched its third generation hardware line, said to be a completely redesigned home security platform that supports an array of security sensors, cameras and smart home integrations.
SimpliSafe has also struck some key partnerships this year, such as an integration with Apple watch where users can disarm the system, get alerts and activity notifications. Users can also use voice assistant Alexa with SimpliSafe.
At ISC West 2018, the company and August Home announced an integration that allows SimpliSafe customers to automate locking and unlocking their August Smart Lock and August Smart Lock Pro in sync with arming and disarming the security system.
Hellman & Friedman focuses on investing in business franchises and serving as a value-added partner to management in select industries including consumer & retail, software & technology, internet & media, financial services, business & information services, healthcare and industrials & energy.
Last year Hellman & Friedman purchased SnapAV, a manufacturer of A/V products, from private equity General Atlantic for an undisclosed amount.
Qatalyst Partners and Raymond James Financial served as advisors to SimpliSafe on the transaction and Goodwin Procter acted as legal counsel to SimpliSafe. Simpson Thacher & Bartlett acted as legal counsel to Hellman & Friedman. Kirkland & Ellis served as legal advisor to Sequoia Capital, which invested $57 million in the company in 2014.
