Argyle buys thrice
SAN ANTONIO--Argyle Security, an international integrator working in the corrections and commercial markets, has announced the acquisition of three companies for a total of $14 million. Argyle's principal subsidiary, ISI Security Group, the acquisition of which turned Argyle from a holding company into a going operation in 2007, will operate both Peterson Detention, which manufactures windows and furniture for detention facilities, and FireQuest, which installs and services commercial fire alarm and suppression products.
The third company, Com-Tec Security, will merge with Argyle in a deal expected to close after SSN went to press. Com-Tec designs and manufacturers electronic security and communications systems throughout the United States, and has a significant presence in the corrections vertical.
Bob Marbut, co-chief executive officer at Argyle, said increasing service revenues is a major goal for the company and Com-Tec will help do that in the corrections business, where Argyle has little recurring revenue through its MCS-Detention division. "On the commercial side, though, it's already above 30 percent," he said. The three acquisitions led Argyle to revise its revenue projections for 2008 upward from between $105 and $115 million to between $128 and $142 million, including an additional $1.5 million in RMR from Com-Tec alone.
In the near term, all three companies will keep their brands and staffing. "We're trying to create a stew here," Marbut said, "not a clear soup. We keep the identities of the critical parts."