IASG makes commercial acquisitions

Top execs also pick up more common shares
Thursday, January 1, 2004

ALBANY, N.Y. - In late November, top executives and directors at Integrated Alarm Services Group increased their holdings in the alarm monitoring company. At about the same time, the company’s board also approved the acquisition of Lane Security, parent company of PSI (see related story on page 1).

According to a Form 4 filed with the Securities and Exchange Commission, IASG Chairman and Chief Executive Officer Timothy McGinn purchased 10,000 shares of common stock on Nov. 26 for $71,930. This increased McGinn’s total ownership in the company to 378,525 shares, or roughly 1.5 percent of the outstanding stock.

On the same day, Thomas Few Sr., president and chief operating officer, purchased 2,000 shares for $14,360, bringing his ownership total to 747,950 shares, or about three percent of the outstanding stock.

McGinn’s partner in the investment firm McGinn Smith & Co. and a director of the company, as well as seven IASG board members also reported purchases.

According to McGinn, IASG also increased its number of monitoring contract acquisitions since its August initial public offering to more than 85,000 with the purchase of 12,000 contracts in Las Vegas and 1,400 in Tampa, Fla. McGinn said these contracts will generate more than $400,000 in recurring monthly revenue.

McGinn said acquisitions will continue to be a main focus of growth for IASG in the next year.

“We do have a number of transactions in our pipeline,” he said. “Our plan is to grow our company through acquisition through 2004, and our minimal threshold target is to acquire 125,000 accounts in ’04.”

However, he added, the plan for the first part of 2004 is to focus on organizing the company internally.

“Early in the new year our focus is going to be on making sure that we properly assimilate the business that we’ve already brought in and get it properly positioned within our company,” McGinn said.While IASG hopes to increase the size of its commercial contract holdings, McGinn said the company’s main focus will remain the same.

“Our core business is residential business, and that will continue to be the case,” he said. “We’ll grow organically in the commercial market, but we don’t look to make huge acquisitions in that area.”