Chicago is Security Networks' kind of town
WEST PALM BEACH, Fla.--Security Networks moved into the Midwest for the first time at the end of 2005, with its acquisition of Alarm One's Chicago branch.
The cash deal, terms of which were not released, closed on Dec. 23, said Richard Perry, president of Security Networks.
This is the fourth acquisition in the last 12 months for Perry, who also acquired accounts from Pilot Home Technologies in North Carolina, a central station in Orlando and an alarm company in the Philadelphia area within that time frame.
The Chicago acquisition brings with it $230,000 in recurring monthly revenue and 6,400 accounts, most of them residential.
"Our plan is within five years to build a business with $5 million in recurring monthly revenue in major markets in the East," Perry said. A year-and-one-half into this plan, Security Networks is "just shy of $1 million in RMR."
"This acquisition fits with our plan. It's in the third largest market in the states, so there's a critical mass, and economies of scale and a big enough platform for us to go in there and grow organically from there," he said.
Perry is also interested in more acquisitions in the markets Security Networks is currently in--Chicago, The Carolinas, Philadelphia and Florida, as well as other major Eastern markets such as Atlanta and Washington, D.C.
All four of Alarm One's Chicago employees will stay and the operation will continue to be run out of the current office. The accounts will be transferred to Security Networks' central station in Orlando and Alarm One will "transition to the Security Networks name over the course of the next year," Perry said.
Since Perry's most recent acquisition of Tri-State Alarm in July, Security Networks has been consolidating operations, including getting all branches on one accounting platform and moving all accounts to its central station.
"We're on track to finish this up by the end of the year," Perry explained.
Peter Maltby, president of California-based Alarm One, did not return phone calls before press time.