Interface Security acquires majority share of Greater Alarm
December 2, 2004
ST. LOUIS - Interface Security Systems Holdings acquired a majority interest in Irvine, Calif.-based The Greater Alarm Company on Nov. 22. Full financial terms of the deal, which is the largest transaction to date for Interface, were not disclosed.
George DeMarco, who founded Greater Alarm in 1981, with his brother Jim, will together retain a minority interest in the company, which will become a subsidiary of Interface. George will retain his role as president and add the title of chief operating officer; Jim will serve as vice president, focused on the residential and builder markets.
"There's a huge potential to grow this business," said DeMarco. "Coming together, it provides us with capital and resources that are going to help us grow and take us to the next level."
As a result of the transaction, Interface Security Systems Holdings increases its position within the United States with the addition of Greater AlarmÃ¢â‚¬â„¢s offices in northern and southern California, including Corona, Irvine, San Diego, San Jose and Sacramento.
"The first thing that came to both of our minds was Ã¢â‚¬Ëœthis a good fit,Ã¢â‚¬â„¢" said Mike Shaw, chief executive officer of Interface Security. "Greater Alarm was just exactly what we were looking for. It had significant scale, good branch infrastructure throughout the state and a focus on high-end commercial and residential."
Interface Security Systems Holdings is the parent company of Interface Security Systems, which is a full-service security firm with customers in the states of Arkansas, Illinois, Indiana, Louisiana, Mississippi, Missouri, Tennessee and Texas.
Interface Security Systems Holdings funded the deal through equity financing from existing investor SunTx Capital Partners and a senior credit facility from LaSalle Bank. Since 2002, Interface has followed an acquisition strategy to increase its presence within the United States, and this deal marks its 21 such deal.
Greater Alarm is a systems integrator focused on the high-end commercial and residential markets.