CSG Security, aspiring super-regional, doubles size
CHARLOTTE, N.C.—When CSG Security opened its doors here in 2014, founder Jeremy Brooks said the company would be the industry's next super-regional. This week CSG Security doubled the size of its business with the acquisition of Intelligent Technology Inc.
Within two years, Brooks said CSG Security will be in Virginia, North and South Carolina, Georgia and Florida.
"We'll get there," Brooks said. "Now I'm capitalized correctly and I have some targets I want to go after," he said.
“This [Intelligent Technology] will be one of two or three that are coming down the pike,” he said.
Intelligent Technology, also based here in Charlotte, is a large commercial company with $2- to $3 million in revenue, $35,000 in RMR and more than 1,000 accounts.
Former owner Ray Barry and nine other ITI employees will join CSG Security.
“ITI is huge in security, fire, access and video,” Brooks said. “They have a rich customer base that has been well served.”
This deal has been in the works for 12 months, during which time, Brooks said he’s come to know ITI and its employees very well.
CSG Security had 10 employees before this deal; its staff now numbers 20. CSG Security has also just hired a new CFO.
CSG Security also recently completed an acquisition of residential accounts from Safe Tech Security.
In addition, CSG Security will be moving into a new headquarters in September. “We leased a state-of-the-art facility and it’s under construction right now,” Brooks said.
The ideal make-up of a super-regional is 50-50 residential and commercial. “You need two separate divisions, but you need to equally focus on both,” he said.
Brooks plan is to move into new markets and to grow organically in those markets. Brooks said he’s identified two more deals, one of which he expects to close before the end of the year.