ASG acquires Accutech Systems
BELTSVILLE, Md.--Making good on his autumn prediction that ASG Security would be at $2.5 million in RMR by year's end, ASG chief executive Joe Nuccio on Dec. 26 announced the acquisition of integrator Accutech Systems of Rockville, Md.
"Our plan to grow the organization and leverage our current facilities and infrastructure in the Washington-Baltimore market came together with this acquisition," Nuccio said. ASG is a major super-regional security company with operations in the Mid-Atlantic region and Texas.
Accutech brings with it $200,000 in RMR, $5 million in annual installation revenue and 900 customers. Former owner Tim Miller and all 45 Accutech employees will stay on. Miller will assume the role of vice president of government and commercial sales.
Les Gold and Tony Adler at Mitchell, Silberberg & Knupp represented Accutech in the deal.
Accutech's business is 90 percent commercial and the company specializes in government work. Adding a systems integrator with a heavy government emphasis complements the "existing ASG branch in Washington-Baltimore, which does $290,000 in RMR and is 60 percent commercial," Nuccio said.
Miller founded Accutech Systems in 1987. He grew the company, without acquisitions, "one client at a time," Miller said. Government work accounts for more than 40 percent of Accutech's current business. "As a systems integrator, we've always tried to offer A-to-Z solutions," Miller said. "We put in and support our own networks and infrastructure ... from traditional video and intrusion to emergency communications, and elaborate bio-hazard and chemical warfare detection for all kinds of outfits."
Miller said he's had to turn away business and teaming up with ASG will mean more business for the new entity. Accutech Systems will continue to operate under this name and will remain at its current Rockville location for the immediate future, Nuccio said.
ASG does quite a bit of municipal government work in all regions, said Bob Ryan, ASG vice president of sales and marketing. Its federal government work is concentrated in South Texas, however. ASG's McAllen, Texas, subsidiary Argus Security Systems, is "the dominant player in the Rio Grande. We do a lot of border patrol ... GSA and immigration department work down there and we have a pretty robust list of blue chip accounts down there."
Nuccio called Accutech the "missing piece of the puzzle" that brings ASG close to a 50-50 commercial/residential balance.
When he took over a revamped ASG in 2003, Nuccio outlined a three-year growth plan to increase accounts and RMR to just about where the company stands today at $2.5 million in RMR and more than 70,000 accounts. Nuccio's resolution for 2007 is to "stick to the same game plan."
That means continuing to develop internal operations and, likely, a move into a new region in 2007. ASG is only interested in regions that are contiguous to its current regions. "We like market density," Nuccio said, "having customers in concentrated areas which enables [efficiencies in] sales, service and installation."