Infrastruct acquires Monarch, Kimmons' accounts
HOUSTON--Infrastruct Security, an integrator operating in the Gulf Coast region, announced this week the acquisition of Monarch Security in its entirety, along with the accounts of Kimmons Security Services. Terms of the deal were not disclosed, but Infrastruct expects the additions to bring in annual sales near $10 million, resulting in $15 million in 2007 sales for Infrastruct, with monthly recurring services revenue at roughly $75,000.
Following Infrastruct's July 1, 2006, landing of $4 million in funding, Monarch was an early target for acquisition, said vice president of marketing and sales Andrew Wray. Monarch's accounts are entirely commercial in nature, with 80 percent falling within the critical infrastructure vertical, Wray said, and "part of our original venture strategy was for us to take a more dominant position in the critical infrastructure market through acquisition and organic growth."
Kimmons, on the other hand, "was the right thing to do at the right time." The company was looking to specialize in investigative services, Wray said, and "we have an acquisition team in place that looks for opportunities. Kimmons was looking for a similar opportunity and so a deal was struck." Kimmons has a strong base in the water distribution and treatment market and will continue to sell accounts that will then be turned over to Infrastruct.
This new account base will benefit, Wray said, from the company's nearly-complete new central station. Infrastruct expects the facility to be fully operational by February.
"It's going to increase our capabilities," Wray said, "in that we'll offer our customers a more enhanced service offering, allowing them to make the necessary changes as they see fit, give them a more hands-on and interactive approach to their own security. And if they choose not to do that, it will act like a normal central station."
The new station will also make it easier, Wray said, to integrate acquired accounts into the business.