ASG's buy of ProStar adds to company's sales force
BELTSVILLE, Md.--ASG Security added to its residential account base in March when it acquired Texas-based ProStar Security--a deal that also added 40 people to the company's sales force.
The acquisition is yet another deal under ASG's belt in 2005. The company has continued to follow an aggressive acquisition pace over the past twelve months, including four transactions that were completed within a 30-day period in early 2005, which added 6,700 new customers to the business.
The addition of ProStar, which employed roughly 70 people, added 2,700 accounts to ASG and 95 percent of those accounts are residential, according to Bruce Pfaff, president of ProStar, who co-founded the company with his partners, Joe Tongish and John Orozco in 1997. When ASG expressed interest in the company, it was a time when all three partners were looking to divest their interest.
"We had a good run and when ASG wanted to buy the company, it worked out well," Pfaff said.
For ASG, the acquisition was a way to balance the company's portfolio.
"We wanted to keep our strong commercial and residential base solid, and find a nice residential platform in Dallas and Houston that can grow as we grow," said Joe Nuccio, president of ASG.
Aside from the ProStar's market reputation and account base, it also brought a strong team of internal salespeople to the table, which enhances the company's sales efforts.
"If you look at it, we acquired this company for two reasons," said Bob Ryan, vice president, sales and marketing, at ASG. "The first was for the bulk of the business and the second was the fact that we acquired a high powered sales team, If you had to grow this team from scratch, it would take years."
Nuccio also said the new sales professionals will be able it to feed off the existing ASG sales team and vice versa.
"It's a good balance and a good learning curve for everyone," he said.
Nuccio said ProStar overlapped ASG's current footprint in the Texas market. Before the deal each had offices in Dallas and Houston, but now the two have combined their office locations in both areas.
Another benefit of the transaction, according to Ryan, is that it gives ASG a jump on its competitors in the market.
"When you make an acquisition of a company like ProStar that used to be your competition and is now on your side," he said, "it really sets the competition on its heels and gives us a head start."