IASG acquires business from Alliant for $14.5M in cash
May 27, 2004
ALBANY, N.Y. - Integrated Alarm Services Group, an operator of several central stations and security installation businesses, acquired out of bankruptcy the alarm contract portfolio and other key assets of Alliant Protection Services, a Glendale, Calif.-based security alarm company for $14.5 million in cash.
In January, Alliant filed for Chapter 11 protection at Central District of California, through its Los Angeles division. Thomas K. Rankin and Sherman Brawner founded the company in July 2002, and soon after secured more than $26 million in financing from private equity firm Warburg Pincus.
IASG valued the deal based on AlliantÃ¢â‚¬â„¢s contract portfolio that generates approximately $523,000 in recurring monthly revenue. The portfolio is comprised of roughly 17,400 monitored contracts that bill at approximately $30 per month. Nearly 60 percent of the portfolio is residential contracts.
Ã¢â‚¬Å“WeÃ¢â‚¬â„¢ve raised capital to put it to work and will continue to do so,Ã¢â‚¬Â said Joseph L. Reinhart, director of investor relations at IASG. The company completed its initial public offering last summer, and has since completed about six multi-million dollar acquisitions that compare in size to the Alliant deal, according to Reinhart.
The deal includes a small central station in California and approximately 50 former Alliant employees primarily in commercial sales and installation. IASGÃ¢â‚¬â„¢s headcount is now around 550. All of the acquired alarm contracts are in either northern or southern California, as Alliant concentrated its operations on the West Coast.