Interface revs it up
EARTH CITY, Mo.--Interface Security now has $100 million in cash on hand to pursue the expansion efforts it first alluded to late last year when the company combined operations with Greater Alarm.
And its continued expansion could come sooner rather than later, with officials at the company expecting a sizable acquisition to close before the end of last month.
"We are very close to completing a large transaction in what will be a new market for us," said Mike Shaw, chief executive officer of Interface Security. "And the funds from CapitalSource will be used for this large transaction."
For Interface, the new credit facility from CapitalSource replaces an existing credit facility from multiple lenders. Working with a single lender familiar with the security industry also simplifies the underwriting process for Interface Security, said Shaw.
The $100 million senior revolving credit facility marks one of the largest financial commitments made by CapitalSource in the security industry, according to Bill Polk managing director of the security lending group for finance firm Capital Source.
Financing for Interface Security is key to funding its future growth, according to Shaw, with acquiring security companies an important focus.
As of mid-September the company completed seven acquisitions since the beginning of this year. And since July, the integrator brought on 8,000 customers in California, Louisiana and Mississippi through asset-based acquisitions.
"We're continuing along the same strategic path that we've been on for the last four years," said Shaw. "It's a two-fold approach. One is we continue to look for quality acquisition opportunities in existing markets. And at the same time, we are aggressively growing internally."
One of Interface Security's most notable acquisitions occurred when it bought Irvine, Calif.-based Greater Alarm at the end of last year. The company brought to the table $25.4 million in annual revenues, five offices and 153 employees. The deal is the largest purchase by Interface Holdings, the parent company of Interface Security.
Over the years, Interface Holdings has completed 20 acquisitions of smaller security companies.