Covert makes a return, again
August 12, 2004
CHICAGO - Well-known security veteran Jim Covert is making a return to the security industry after a three-year absence and the end of a non-compete agreement with Tyco.
Covert has been tapped by GTCR Golder Rauner to become chief executive officer of its newly acquired Honeywell Security Monitoring business and play an instrumental role in the growth of the company.
David Trujillo, vice president of GTCR Golder Rauner, said Covert and GTCR have a long history of working together. The two teamed-up in 2001 on the SecurityLink from Ameritech deal, a company that had $500 million in annual revenue and operated 119 branches. GTCR provided the financial backing and Covert brought the executive management expertise.
Within a matter of months, GTCR and Covert turned the business around, reducing overhead costs and consolidating locations. They then sold that installation business, and National Alarm Computer Center, a California central station, to Tyco for $1 billion.
Trujillo said GTCR plans to reshape the Honeywell Security Monitoring business, but will take a different approach. He said the plan is to grow the business and hire additional sales people, not reduce operations.
Ã¢â‚¬Å“This is less of a turnaround than SecurityLink,Ã¢â‚¬Â said Trujillo. Ã¢â‚¬Å“This business is highly profitable, but itÃ¢â‚¬â„¢s been diminishing in size over time.Ã¢â‚¬Â
Honeywell Security Monitoring currently serves 120,000 customers from 45 locations. Of that, 85 percent of its business is in the commercial side of the market.
Trujillo said the goal is to double the companyÃ¢â‚¬â„¢s recurring monthly revenue within the next three years, from $8 million today to $16 million.
For more on this story, see the September issue of Security Systems News.