IASG board approves PSI purchase
November 27, 2003
ALBANY, N.Y. - Last week, the board of directors of Integrated Alarm Services Group Inc. approved the companyÃ¢â‚¬â„¢s proposed acquisition of Lane Security Inc., parent company of Protection Services Industries.
In PSI, IASG will acquire total recurring monthly revenues of $1.8 million, represented by 60,000 alarm contract equivalents. IASG uses contract equivalents, which are based on industry and company estimates of $30 per month in RMR, when discussing contracts rather than using raw numbers. For example, an account with $120 in RMR would be counted as four accounts under the companyÃ¢â‚¬â„¢s policy. According to IASG, PSI also generates approximately $550,000 in monthly revenue from its service and inspection activities.
Lane Industries, parent company of both Lane Security and PSI, has also received board approval to consummate the transaction, which IASG said should be completed by mid-December.
In announcing the proposed PSI acquisition, IASG also said it had acquired 1,400 monitoring contracts in Tampa, Fla., which represent $42,000 in RMR. The acquisition of both Lane Security and the Tampa monitoring contracts should total approximately $48 million, the company said.
On Monday, IASG said it had acquired an additional 12,000 alarm contract equivalents that will generate approximately $360,000 in RMR. The company paid $10.4 million for these contracts, which are located in the Las Vegas area.
These acquisitions are part of IASGÃ¢â‚¬â„¢s attempt to grow its portfolio by focusing on new geographic areas, commercial monitoring and acquisition of companies in 2004.
Ã¢â‚¬Å“WeÃ¢â‚¬â„¢ve identified several opportunities to acquire operating alarm companies with several million dollars of contract recurring monthly revenue,Ã¢â‚¬Â said IASG Chairman and Chief Executive Officer Tim McGinn in a conference call to discuss the companyÃ¢â‚¬â„¢s thrid-quarter 2003 results.
McGinn also said IASG is on target for year-end goals in account acquisition and attrition that it stated prior to its initial public offering in July.
Ã¢â‚¬Å“These Las Vegas accounts, coupled with the pending PSI acquisition and other smaller contract purchases already concluded, will bring the total equivalent contract additions since the IPO to over 85,000 accounts,Ã¢â‚¬Â he said.
For more on IASGÃ¢â‚¬â„¢s 2004 plans, see the December issue of Security Systems News.