GTCR finalizes Protection One acquisition

SSN Staff  - 
Monday, June 7, 2010

CHICAGO—Following up on an April story from Security Systems News, private equity firm GTCR, on June 4 announced the successful completion of the acquisition of Protection One a national provider of electronic security alarm monitoring services.

According to a GTCR release, P-One is the third largest provider of electronic security monitoring services in the U.S. based on RMR and is one of only three security monitoring companies with a nationwide footprint. P-One provides a full suite of electronic security monitoring services to both the residential and commercial markets. Services offered include burg and fire protection, access control, video surveillance, maintenance and monitoring.

GTCR’s purchase of P-One marks its third collaboration with security industry expert Tim Whall, who previously partnered with GTCR on its successful investments in Cambridge Protection Industries and HSM Electronic Protection Services. Cambridge, operating through its SecurityLink brand, provided electronic security services to more than one million customers. Cambridge was sold to ADT for approximately $1 billion in cash in 2001. HSM was a leading provider of security services to the commercial market. HSM was sold to Stanley for $545 million in cash in 2007. Whall, previously the CEO of HSM and COO of Cambridge, will serve as P-One’s CEO.

In connection with the transaction, Morgan Keegan & Company, Inc. and Barclays Capital served as M&A advisors and Barnes Associates served as an industry advisor to GTCR. Latham & Watkins LLP and Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel. GTCR’s investment in Protection One will be made from GTCR Fund IX, a private equity fund raised in 2006 with $2.75 billion of committed capital.