ASG acquires Encompass
BELTSVILLE, Md.—What ASG executives really like about the acquisition, completed today, of Encompass Security is that it’s a company “that really understands the RMR business.”
“There are plenty of integration companies out there,” said Bill Rose, ASG’s SVP of operations. “We want to find those that understand the RMR business, and the maintenance and monthly support of customers.”
“There’s a lot of talk about service [among integrators] but Encompass has do-or-die same-day service,” Rose continued.
Rose characterized Encompass, which is based in Southlake, Texas, as a sophisticated, high-end integration company that does large access-control and video installations. It plays in the education, health care and banking verticals, among others.
The acquisition brings with it 500 accounts, and about a dozen employees, including two operating partners, Richard Hambrick and Karl Morgan, who will join ASG’s Dallas team. The former owner, Ray Gilley, plans to pursue other interests, after consulting with ASG for a short time.
ASG did not release the amount of RMR associated with the deal.
Encompass will be folded into ASG’s Dallas branch, and Rose noted there is little duplication of resources among the two staffs. “We have the internal resources for engineering, CAD design and preparation for sale. They had been using outside sources for that,” he said. “We get a highly trained technical group and high-level sales people, and they gain the ability to have jobs prepped for them” using resources in Dallas.
ASG, which is generally active most quarters with acquisitions, has been quiet since its move into New England last summer. “Joe [Nuccio ASG CEO] will tell you that we’ve been directing our efforts internally,” explained Bob Ryan, ASG SVP sales and marketing.
That’s not to say 2009 was a bad year for ASG, in fact, Ryan said 2009 was “a great year.”
“We’re very fortunate that since we started seven years ago that every year has been our best year yet,” Ryan said. “And we’re coming off the first quarter ahead of plan.”
CFO Ralph Masino said that ASG currently has the “largest project backlog we’ve ever had” and that its acquisition pipeline is equally full. Expect ASG to be acquisitive in 2010, Masino said, but it’s got a definite idea of what kind of company it’s seeking.
ASG in the early years acquired more traditional burg, CCTV and access companies, but it has focused more on a range of security specialties in recent years, something that’s served it well during the recession, Rose noted. “If one [sector] is down, we’re not totally reliant on that. Our diversity has helped us.”
Masino noted that Davis Marketing Group assisted with the acquisition.